SB1910sam001 101ST GENERAL ASSEMBLY

Sen. Christopher Belt

Filed: 3/14/2019

10100SB1910sam001 LRB101 10775 RPS 57344 a

AMENDMENT TO SENATE BILL 1910

AMENDMENT NO. ______. Amend Senate Bill 1910, by replacing line 6 on page 2 through line 8 on page 3 with the following:

"For municipal fiscal years 2021 through 2025, the annual requirements to be provided by such tax levy and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund for the year involved, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 30-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality.

For municipal fiscal years 2026 through 2035, the annual requirements to be provided by such tax levy and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund for the year involved, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 30-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. However, for each municipal fiscal year until municipal fiscal year 2035, the rolling amortization period specified in this paragraph shall be reduced by one year for each municipal fiscal year after 2026. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality.

For municipal fiscal year 2036 and each year thereafter, the annual requirements to be provided by such tax levy and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund for the year involved, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 20-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality."; and

by replacing line 11 on page 7 through line 18 on page 8 with the following:

"For the purposes of this Section, for municipal fiscal years 2021 through 2025, the annual actuarial requirements of the pension fund and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund, or 17.5% of the salaries and wages to be paid to firefighters for the year involved, whichever is greater, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 30-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality.

For the purposes of this Section, for municipal fiscal years 2026 through 2035, the annual actuarial requirements of the pension fund and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund, or 17.5% of the salaries and wages to be paid to firefighters for the year involved, whichever is greater, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 30-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. However, for each municipal fiscal year until municipal fiscal year 2035, the rolling amortization period specified in this paragraph shall be reduced by one year for each municipal fiscal year after 2026. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality.

For the purposes of this Section, beginning municipal fiscal year 2036 and each municipal fiscal year thereafter, the annual actuarial requirements of the pension fund and the required minimum contribution to the fund are equal to (1) the normal cost of the pension fund, or 17.5% of the salaries and wages to be paid to firefighters for the year involved, whichever is greater, plus (2) an amount sufficient to bring the total assets of the pension fund up to 100% of the total actuarial liabilities of the pension fund over a 20-year rolling amortization period, as annually updated and determined by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level dollar amount over the amortization period and shall be determined under the entry age normal actuarial cost method, and shall be determined using the most recent mortality tables available and investment assumptions recommended by an enrolled actuary employed by the Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality.".