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Actuary: Sunbury police pension 'about 157% funded'; council to invite PMRS rep to discuss options
Summary
An actuary told Sunbury City Council the police defined‑benefit plan is well funded (about 157%), but an audit flagged benefit language that exceeds Third Class City Code limits; the council agreed to invite a PMRS representative to explain options for non‑uniform employees and to review filings required by the auditor.
An actuary briefed the Sunbury City Council on municipal pension issues, saying the police defined‑benefit plan is unusually well funded and currently requires no employer contributions.
"The funding percentage on an accrued liability basis is about 157% funded," the consultant said, adding the plan uses a 7.5% interest assumption and that investments and actuarial assumptions should be aligned with that target. He told council that, because of the plan's high funded level, "the requirements for contribution are zero" for now.
But an audit flagged plan language that provides benefits for officers with more than 20 years that exceed what the Third Class City Code permits. The actuary said the state expects two filings: one showing benefits as written and a second that models benefits limited to the Third Class City Code so the state can confirm it is not subsidizing benefits beyond the statutory limit.
On the audit's $8,800 finding, the consultant said the payment came from the pension plan and does not need to be returned to the state; it will remain an audit note until governing documents are amended for future hires.
Council members also discussed a non‑uniform defined‑contribution plan created for hires after 2022. The consultant said the state audit raised questions about whether that arrangement is eligible for state aid under Third Class City rules and outlined options: return those employees to a defined‑benefit plan administered via PMRS, keep the defined‑contribution approach but accept no state aid for those participants, or design a separate actuarially managed tier outside PMRS.
Council members asked to have a PMRS representative and the plan administrator attend a future work session to answer detailed questions about interest‑rate assumptions, contribution scenarios and administration. The council did not take a formal vote during the work session; members said they wanted the additional information before deciding whether to change plan structure.
