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R-24-25 A RESOLUTION ESTABLISHING A POLICY REGARDING THE BUDGETING AND PAYMENT OF SUPPLEMENTS TO BENEFICIARIES OF THE FIRE AND POLICE RETIREMENT SYSTEM AND THE PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM. WHEREAS, the City administers two closed retirement systems for former City employees, the Fire and Police Retirement System and the Portsmouth Supplemental Retirement System (the "Closed Retirement Systems"); and WHEREAS, by Ordinance 2019-74 adopted on October 22, 2019 City Council amended Sections 30-122 and 30-243 of Chapter 30 of the City Code to provide that no adjustment to retirement allowances under the Closed Retirement Systems would be allowed unless and until the systems are funded at no less than 80% of the actuarial accrued liability; and WHEREAS, retirement allowances, which result in a recurring increase in retirement fund expenditures, are distinct from supplements, which are generally paid from the General Fund and do not increase retirement system expenditures; and WHEREAS, from time to time City Council has appropriated fund balance to the General Fund for the payment of supplements to Closed Retirement System beneficiaries; and WHEREAS, City Council has not adopted any official policy regarding the payment of supplements, resulting in uncertainty for Closed Retirement System beneficiaries regarding when and if a supplement will be paid in a given fiscal year, as well as budgetary uncertainty for the City; and WHEREAS, City Council therefore desires to adopt a policy to govern consideration of the payment of supplements to Closed Retirement System beneficiaries; NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it hereby adopts the following policy: 1. During the annual budget adoption process City Council shall determine whether, and in what amount, a supplement shall be paid to beneficiaries of the Closed Retirement Systems during the upcoming fiscal year. The City Manager may provide information and recommendations to assist with City Council's evaluation. 2. City Council's final determination shall be expressly set forth in the annual budget ordinances adopted by City Council at the first meeting in May. 3. After the budget adoption process is complete, the payment or amount of a supplement shall not be revisited until the consideration of the budget for the next fiscal year. ADOPTED by the Council of the City of Portsmouth, Virginia at a meeting held on September 10, 2024. Teste: City Clerk