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f~pni\lA.', ~tI\E." '10~' 2013 -18 l.J.t.tUi .2111 ,. "<-_.,-~,..,..,.' AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PENSION OBLIGATION BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $175,000,000. WHEREAS, the Council of the City of Portsmouth, Virginia (the "City Council"), has been advised that two City-sponsored retirement systems, the Portsmouth Supplemental Retirement System (the "PSRS") and the Portsmouth Fire and Police Retirement System (the "PFPRS" and, together with the PSRS, the "City Retirement Systems") are underfunded despite the City's efforts to make the annually required contributions recommended by the City's actuaries; WHEREAS, the City Council desires to increase the level of funding in the City Retirement Systems in an efficient and cost-effective manner and has been advised that the issuance of general obligation bonds to fund immediate contributions to the City Retirement Systems (the "Retirement Systems Contributions") is efficient and cost-effective in the current economic environment; WHEREAS, the City Council is also considering amendments to Chapter 30 of the Portsmouth City Code to reduce or eliminate the Social Security offset requirements that apply to all current and future retirees under the PSRS; WHEREAS, reduction or elimination of the Social Security offset will result in a financial benefit to all retirees covered by PSRS, since their PSRS pensions will no longer be reduced by up to 50% of their Social Security benefit at age 65; WHEREAS, the City Council has been advised that an efficient and cost-effective strategy in the current economic environment to cover added costs of the reduction or elimination of the Social Security offset is the issuance of general obligation bonds to fund an immediate contribution to the PSRS; -1-