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262 <br /> <br />June 12, 1990 <br /> <br /> State law requires that our mpni'cipal Retirement Systems <br />be funded on the basis of sound actuarial principles. Our City <br />Code defin~'more specifically the actuarial funding method <br />which is used'to.~determine the amoun~'~f 'required emplOyer <br />contributio~s.' There are three contributio~ rates re'qu~-red by <br />the City Code: the normal contribution rate, the accrued <br />liability ~on~bu't~on~ra~e, and the supp~emen~ary~c~rfb.ution <br />rate. I ~, r~¢omme~igg no change ~relati:ve to the :normal:~ <br />contributiO~'~ate~ 3':~m also recomme~d:ing no change,'~elativa <br />to the accrued l~:~abil~ty contribution rat~, ex:cept as i~t is <br />affected by the supplementary contribution rate. The <br />supplementfary..co~t~b~ion rate'cgrrently ~required :by,~the City <br />Code is to ~ro%i~e ~he pre-fuddling ~the~,cost ~'the <br />pension i~r~aB'~ wfn-ic~'alre provided-~nhual~ y::by ,the' C'fty~- <br />Council. ~F~i~noe ~fundi~ ~is alread~ -available ~in"the :R6tirement - <br />Systems wh~dh~.~a~-ibe~sed to cover the~c0gt ~of, the pension- <br />increases ~t ~hfi-~it~ime;r it is unnecessary for additional <br /> eohtrg~.Du%~n~ ~o~be paid~.~,Accerdingly, ~y:~tfernative~ <br />employer ..... ' <br />recommendd~on:'~ss'(fO~!the supplementary 'contribut;ion~ rate:t~be <br />eliminate~h~:~nd:~n~ is alreadyaqailable: in the:Reti~rement <br />Funds (i.:~:~wh~hC~he~e exists a negative ~n~unded:actuarial <br />accrued li~abflf~y~. ~.~s change weuld reduce t~e'~employer'~s .-~ <br />contributf~' ~o gte Re~irement Systems for fiscal' year 1990-9Y: <br />by approximately $710,000. ~ ..... ~ <br /> <br /> Our abtuarial advi~sors have~ confirmed th'at this <br />modificatiO~ in the e~ployer contributions will c6ntinue the <br />funding of.:th6 Portsmouth Re6irem~nt Systems on a sound <br />financialaD~si~, t~hus~meeting the,~f,d'nding requireraent of the ~ <br />State Code~.~ S~n~'e no cmonies woul~ be paid out of the <br />Retirement.Systems~under this alternative proposal, ghe leg:al <br />questions~ha~ were raised relative to my original p~oposal <br />would be gemo~ed. ~ Therefore, I:,wish~to recommend that:the City <br />Council adopt'an ~rdinance to amend the :City Code to implement- <br />this alte~mag~ve proposal <br /> <br /> Final:l~y, L:Wi~!to state my commitment ~fio ensure that the <br />Portsmouth'~Retirement .Systems are adequately funded at all <br />times. H~wever, e~en in light of this commitment, I feel that: <br />it is app~op~i'a~e'~o fax the Citizens of Portsmouth only to the <br />extent that gS~,-n~Cess~ry to adequately fund the retirement <br />systems. ~ve~ t~e presently Well~funded status of the <br />Retirement'~Funds,'~:t feel that this recommendation is <br />responsibf~bo~h ~o o~r taxpayers and td the continued <br />financial soundness of the Retirement Systems. I recommend <br />that Council adopt the attached ordinance. Additionally, in <br />order to im~plement.the elimination of ~the supplementary <br />contribution r~te:f6~ the 1990~91 fiscal year~ it will be <br />necessary f~'r C6u-n~il~to amend the previously adopted <br />appropriat'ions ordinance as attached. I recommend these <br />actions f~r:the~Co~ffcil's adoption.." <br /> <br /> Bill~-Mopre~';4'648 Winston Road, representi'hg 5he <br />Firefighters and:P'clice Union, spoke'in support of the <br />proposed Ordihanc~. <br /> <br /> Lloyd~W.: Beazley, 3186 Reese Drive, representing the <br />Local 539 PortsmoUth Professional Firefighters, spoke in <br />support of the ordinance, <br /> <br /> Motion of Mr. Barnes and seconded by Mr. Hawks, the <br />following ordinance as amended, in the sentence paragraph (c) <br />above the word "shall" to be replaced with the word "may", was <br />adopted on first and final reading, and by the following vote: <br /> <br /> <br />