(A) Preparation. On or before the thirtieth day prior to the date set by the Mayor for submitting budget requests in any year, the Director of Finance, shall provide the Retirement Board with the recommended budget for all of the Advisory Service expenses to be incurred in connection with the administration of the funds in the ensuing fiscal year.
(B) Submission. The Retirement Board shall submit its estimate of revenue and expenditures for the ensuing fiscal year to the Mayor and the Budget Director, as required by the Charter of the city, in addition, the Retirement Board shall set forth its forecast for all expenses for advisory services to be incurred in connection with the administration of the Retirement System in the ensuing fiscal year.
(C) Required contents of submission. The submission of the Pension and Retirement Fund budget estimates shall set forth and identify:
(1) The total amount anticipated to be required to pay for any advisory service expenses in the ensuing year;
(2) The nature and source of all expenses;
(3) The source of revenue which are anticipated to be used to pay the expenses;
(4) The extent to which any of the foregoing differs from both the current and prior years' budget and actual expenses; and
(5) Any requirements set forth in § 9B-1(a) of the Charter of the city.
(D) Budgetary authority of the Retirement Board.
(1) The Retirement Board shall have sole authority to establish its budget each year, providing, however, that none of its expenses shall be paid from the city's General Fund except within the amounts appropriated by the Board of Aldermen therefor.
(2) Additionally, except as expressly required to fulfill the duties of the Director of Finance, plan administrator and/or the Retirement Board, pursuant to the standard of care set forth in § 35.023 below, the cumulative amount of any administrative expenses which are to be paid from the income of the funds in any fiscal year shall not exceed the total of the expenses reflected in the Director of Finance's recommended budget, or 1% of the carrying value of the funds as of the first day of, the year, whichever is less.
(E) Determination by the Retirement Board regarding a minimal level of appropriation. The Mayor's proposed budget as submitted pursuant to § 9B-2(a) of the Charter of the city shall include levels of appropriation necessary to fulfill the obligations of the city pertaining to the Pension and Retirement Fund. The Retirement Board shall render a determination regarding the level of minimal appropriation, based upon actuarial recommended levels, prior to the submission of the budget to the Board of Aldermen by the Mayor. The Board may also estimate the level of appropriation necessary to meet the expenses of the Board in the performance of its duties during the year.
(F) Annual contribution by the city. The city shall pay annually into the Pension and Retirement Fund:
(1) The proportion of the pay of all members employed by the city as may be determined from time to time by the Retirement Board based on sound actuarial principles; and
(2) The appropriate funds necessary to reduce the unfunded liability of the Retirement System for a period of five fiscal years commencing with fiscal year 2003 - 2004. The contribution shall be referred to as the "Minimum Fixed Contribution." Commencing in fiscal year 2008 - 2009, the city's contribution shall be based on a 30-year flat dollar amortization of the unfunded accrued liability and investment gains or losses will be smoothed, as the term is applied by actuaries to the nonrecognition of investment losses and gains, over a five-year period.
(G) Minimum fixed contribution. The minimum fixed contribution shall be determined in accordance with the methodology, techniques and assumptions employed by the actuaries in establishing the recommended minimum fixed contribution to the pension fund as set forth by the Waterbury Financial Planning and Assistance Board (hereinafter referred to as "WFPAB") in its report entitled "Recommendations on the City of Waterbury's Unfunded Pension Liability" dated March 2003.
(1) The methodology, techniques and assumptions utilized by the WFPAB are set forth in the Actuarial Valuation Report prepared by Hooker & Holcombe, Inc., dated July 1, 2002.
(2) The two aforementioned reports shall be filed with the engrossed version of this subchapter at the office of the City Clerk.
(H) Annual actuarial certification of the minimum fixed contribution.
(1) The minimum fixed contribution shall be certified by a member of the American Academy of Actuaries prior to submission of the budget by the Mayor in accordance with the provisions of the Charter of the city.
(2) Furthermore, said contribution shall be in accordance with the statement of investment policies and objectives established by the Retirement Board and adopted by the Board of Aldermen.
(I) Statement of investment policies and objectives; Aldermanic approval.
(1) The Retirement Board shall propose a statement of investment policies and objectives for the Retirement System, which shall include, without limitation, the following:
(a) The desired rate of return for the fund as a whole;
(b) The desired rate of return and acceptable levels of risk for each asset class within the fund;
(c) The asset allocation goals for the fund;
(d) The guidelines which will apply to the selection and retention of custodians and investment managers for the fund; and
(e) Information on the types of reports that will be used to evaluate investment performance for the fund.
(2) The Retirement Board shall review the statements, and either recommend changes or reaffirm acceptance thereof, at least once each year. The statement and any changes thereto shall be approved by the Board of Aldermen.
(Ord. passed 4-7-2003)