Cost statement of proposed changes prepared by actuary--contents.
105.665. 1. The legislative body or committee thereof whichdetermines the amount and type of plan benefits to be paid shall, beforetaking final action on any substantial proposed change in plan benefits,cause to be prepared a statement regarding the cost of such change.
2. The cost statement shall be prepared by an actuary using themethods used in preparing the most recent periodic actuarial valuation forthe plan and shall, without limitation by enumeration, include thefollowing:
(1) The level normal cost of plan benefits currently in effect, whichcost is expressed as a percent of active employee payroll;
(2) The contribution for unfunded accrued liabilities currentlypayable by the plan, which cost is expressed as a percent of activeemployee payroll and shall be over a period not to exceed thirty years;
(3) The total contribution rate expressed as a percent of activeemployees payroll, which contribution rate shall be the total of the normalcost percent plus the contribution percent for unfunded accruedliabilities;
(4) A statement as to whether the legislative body is currentlypaying the total contribution rate as defined in subdivision (3) of thissubsection;
(5) The total contribution rate expressed as a percent of activeemployee payroll which would be sufficient to adequately fund the proposedchange in benefits;
(6) A statement as to whether such additional contributions aremandated by the proposed change;
(7) A statement as to whether or not the proposed change would in anyway impair the ability of the plan to meet the obligations thereof ineffect at the time the proposal is made;
(8) All assumptions relied upon to evaluate the present financialcondition of the plan and all assumptions relied upon to evaluate theimpact of the proposed change upon the financial condition of the plan,which shall be those assumptions used in preparing the most recent periodicactuarial valuation for the plan, unless the nature of the proposed changeis such that alternative assumptions are clearly warranted, and shall bemade and stated with respect to at least the following:
(a) Investment return;
(b) Pay increase;
(c) Mortality of employees and officials, and other persons who mayreceive benefits under the plan;
(d) Withdrawal (turnover);
(e) Disability;
(f) Retirement ages;
(g) Change in active employee group size;
(9) The actuary shall certify that in the actuary's opinion theassumptions used for the valuation produce results which, in the aggregate,are reasonable;
(10) A description of the actuarial funding method used in preparingthe valuation including a description of the method used and period appliedin amortizing unfunded actuarial accrued liabilities;
(11) The increase in the total contribution amount required toadequately fund the proposed change in benefits, expressed in annualdollars as determined by multiplying the increase in total contributionrate by the active employee annual payroll used for this valuation.
Cost statement of proposed changes prepared by actuary--contents.
105.665. 1. The legislative body or committee thereof whichdetermines the amount and type of plan benefits to be paid shall, beforetaking final action on any substantial proposed change in plan benefits,cause to be prepared a statement regarding the cost of such change.
2. The cost statement shall be prepared by an actuary using themethods used in preparing the most recent periodic actuarial valuation forthe plan and shall, without limitation by enumeration, include thefollowing:
(1) The level normal cost of plan benefits currently in effect, whichcost is expressed as a percent of active employee payroll;
(2) The contribution for unfunded accrued liabilities currentlypayable by the plan, which cost is expressed as a percent of activeemployee payroll and shall be over a period not to exceed thirty years;
(3) The total contribution rate expressed as a percent of activeemployees payroll, which contribution rate shall be the total of the normalcost percent plus the contribution percent for unfunded accruedliabilities;
(4) A statement as to whether the legislative body is currentlypaying the total contribution rate as defined in subdivision (3) of thissubsection;
(5) The total contribution rate expressed as a percent of activeemployee payroll which would be sufficient to adequately fund the proposedchange in benefits;
(6) A statement as to whether such additional contributions aremandated by the proposed change;
(7) A statement as to whether or not the proposed change would in anyway impair the ability of the plan to meet the obligations thereof ineffect at the time the proposal is made;
(8) All assumptions relied upon to evaluate the present financialcondition of the plan and all assumptions relied upon to evaluate theimpact of the proposed change upon the financial condition of the plan,which shall be those assumptions used in preparing the most recent periodicactuarial valuation for the plan, unless the nature of the proposed changeis such that alternative assumptions are clearly warranted, and shall bemade and stated with respect to at least the following:
(a) Investment return;
(b) Pay increase;
(c) Mortality of employees and officials, and other persons who mayreceive benefits under the plan;
(d) Withdrawal (turnover);
(e) Disability;
(f) Retirement ages;
(g) Change in active employee group size;
(9) The actuary shall certify that in the actuary's opinion theassumptions used for the valuation produce results which, in the aggregate,are reasonable;
(10) A description of the actuarial funding method used in preparingthe valuation including a description of the method used and period appliedin amortizing unfunded actuarial accrued liabilities;
(11) The increase in the total contribution amount required toadequately fund the proposed change in benefits, expressed in annualdollars as determined by multiplying the increase in total contributionrate by the active employee annual payroll used for this valuation.
Cost statement of proposed changes prepared by actuary--contents.
105.665. 1. The legislative body or committee thereof whichdetermines the amount and type of plan benefits to be paid shall, beforetaking final action on any substantial proposed change in plan benefits,cause to be prepared a statement regarding the cost of such change.
2. The cost statement shall be prepared by an actuary using themethods used in preparing the most recent periodic actuarial valuation forthe plan and shall, without limitation by enumeration, include thefollowing:
(1) The level normal cost of plan benefits currently in effect, whichcost is expressed as a percent of active employee payroll;
(2) The contribution for unfunded accrued liabilities currentlypayable by the plan, which cost is expressed as a percent of activeemployee payroll and shall be over a period not to exceed thirty years;
(3) The total contribution rate expressed as a percent of activeemployees payroll, which contribution rate shall be the total of the normalcost percent plus the contribution percent for unfunded accruedliabilities;
(4) A statement as to whether the legislative body is currentlypaying the total contribution rate as defined in subdivision (3) of thissubsection;
(5) The total contribution rate expressed as a percent of activeemployee payroll which would be sufficient to adequately fund the proposedchange in benefits;
(6) A statement as to whether such additional contributions aremandated by the proposed change;
(7) A statement as to whether or not the proposed change would in anyway impair the ability of the plan to meet the obligations thereof ineffect at the time the proposal is made;
(8) All assumptions relied upon to evaluate the present financialcondition of the plan and all assumptions relied upon to evaluate theimpact of the proposed change upon the financial condition of the plan,which shall be those assumptions used in preparing the most recent periodicactuarial valuation for the plan, unless the nature of the proposed changeis such that alternative assumptions are clearly warranted, and shall bemade and stated with respect to at least the following:
(a) Investment return;
(b) Pay increase;
(c) Mortality of employees and officials, and other persons who mayreceive benefits under the plan;
(d) Withdrawal (turnover);
(e) Disability;
(f) Retirement ages;
(g) Change in active employee group size;
(9) The actuary shall certify that in the actuary's opinion theassumptions used for the valuation produce results which, in the aggregate,are reasonable;
(10) A description of the actuarial funding method used in preparingthe valuation including a description of the method used and period appliedin amortizing unfunded actuarial accrued liabilities;
(11) The increase in the total contribution amount required toadequately fund the proposed change in benefits, expressed in annualdollars as determined by multiplying the increase in total contributionrate by the active employee annual payroll used for this valuation.
