The Board of Trustees for the Waterworks Pension Fund shall have regularly scheduled actuarial valuation reports prepared by a qualified actuary. All of the following standards shall be met:
(a) An actuarial valuation report shall be prepared at least once every three years commencing with the later of: (1) the first day of July 1984, or (2) three years following the most recently prepared actuarial valuation report; provided, that this most recently prepared actuarial valuation report meets all of the standards of this section.
(b) The actuarial valuation report shall consist of, but is not limited to, the following disclosures:
(1) The financial objective of the Fund and how the objective is to be attained;
(2) The progress being made toward realization of the financial objective;
(3) Recent changes in the nature of the Fund, benefits provided, or actuarial assumptions or methods;
(4) The frequency of actuarial valuation reports and the date of the most recent actuarial valuation report;
(5) The method used to value Fund assets;
(6) The extent to which the qualified actuary relies on the data provided and whether the data was certified by the Fund's Auditor or examined by the qualified actuary for reasonableness;
(7) A description and explanation of the actuarial assumptions and methods; and
(8) Any other information the qualified actuary feels is necessary or would be useful in fully and fairly disclosing the actuarial condition of the Fund.
(c) After June 30, 1983, and thereafter, the financial objective of the Municipality shall not be less than to contribute to the Fund annually an amount which, together with the contributions from the members and other income sources as authorized by law, will be sufficient to meet the normal cost of the Fund and amortize any actuarial deficiency over a period of not more than forty years. Provided, that for those funds in existence on July 1, 1981, its actuarial deficiency, if any, shall not be amortized over a period longer than that which remains under its current schedule. For purposes of determining this minimum financial objective, the value of the Fund's assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value, and all cost, deficiencies, rate of interest and other factors under the Fund shall be determined on the basis of actuarial assumptions and methods which, in aggregate, are reasonably taking into account the experience of the Fund and reasonable expectations and which, in combination, offer the qualified actuary's best estimate of anticipated experience under the Fund. If as a result of this legislation the Municipality's financial commitment to the Fund is materially increased, the Municipality may elect to phase in this increase over the five fiscal years commencing July 1, 1983.
(d) For purposes of this section, the term "qualified actuary" means only an actuary who is a member of the Society of Actuaries or the American Academy of Actuaries. The qualified actuary shall be designated a fiduciary and shall discharge his duties with respect to a fund solely in the interest of the members and members' beneficiaries of that fund. In order for the standards of this section to be met, the qualified actuary shall certify that the actuarial valuation report is complete and accurate and that in his opinion the technique and assumptions used are reasonable and meet the requirements of this section.
(e) The cost of the preparation of the actuarial valuation report shall be paid by the Fund.
(Ord. 0-355. Passed 12-11-84.)