(1) General administration and management. The general administration and management of the Retirement System is vested in the Board.
(2) Financial statements. At least once each year, the Board shall have prepared a financial statement summarizing the transactions of the Retirement System, and shall submit such statement to the Mayor. The Board shall maintain, in convenient form, such data as shall be necessary for actuarial valuation of the Retirement System and the plans thereunder.
(3) Risk management. Within seven (7) days of receipt of by the Board of an application for retirement benefits (other than survivor's benefits), the Board shall notify the City's Risk Manager of the application.
(4) To codify the Board's preexisting policy and practice, at least once each year, the Board shall have a stress test of the Retirement System conducted in accordance with industry standards, shall document the results of such test in a report, and shall submit such report to the clerk of City Council by May 31st each calendar year. The stress test shall comply with the following minimum guidelines: 185.1
(a) The annual stress test shall be based on a projection of the Retirement System's actual and projected assets and liabilities, including unfunded actuarial liabilities, benefit payments, service costs, and payroll, and shall take into account the potential variation in projected employer contributions, the rate of investment return, and such other variables as determined prudent by the Board after consultation with a qualified actuary.
(b) The annual stress test shall examine the potential changes projected with respect to unfunded actuarial accrued liabilities, potential operating cash flow to assets; potential normal cost; potential employer contributions; the impact on projected City Budgets on a dollar and percentage basis as reported to the Pension Board by the Director of Finance; and such other variables as determined prudent by the Board after consultation with a qualified actuary, for each of the next five (5) years from the date of the stress test. Additionally, the stress test shall include an analysis that simulates the volatility of annual investment returns above and below the assumed rate of return adopted by the Board, all in accordance with recognized industry standards.
(c) The report of the stress test results shall document the assumptions and methodologies used to perform the test and shall indicate any ways in which the assumptions used or tests performed differed from industry standards.
Notes
| 185.1 | Added, Bill No. 210772 (approved December 15, 2021). |