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Pulaski approves contribution to defined-benefit pension plan after market shortfall
Summary
The board approved a resolution to fund the city’s defined-benefit pension plan, with staff identifying contributions from multiple funds to restore solvency after market declines.
The Pulaski Board of Mayor and Aldermen voted Aug. 12 to authorize a contribution to the city’s defined-benefit pension plan after an actuarial review showed the plan is underfunded following a stock-market downturn.
City Administrator Terry Harrison told the board that investment losses in recent years left the plan short of required funding. Harrison said the city “needs to put in about a $100,000.” He then listed plan funding sources as: $66,430 from general government, “5 $6,570” from solid-waste collection (transcription unclear), $4,000 from natural gas, and $23,000 from water and sewer. According to staff, those transfers will restore the plan to solvency.
Board members moved and passed a resolution to make the contribution; the vote was taken by roll call and recorded as unanimous.
Harrison said the city’s actuary reviews liabilities and assets annually, and that the city uses a state-allowed formula to amortize funding requirements rather than paying the full amount at once. Board members noted the figure was less than earlier budget estimates discussed at previous meetings.
Action taken: board adopted a resolution to authorize budget transfers to the defined-benefit pension plan, allocating the amounts described by staff.
