Title
A RESOLUTION TO APPROVE THE USE OF THE ALTERNATE CASH FLOW VALUATION METHOD TO DETERMINE THE ACTUARIAL SOUNDNESS OF THE JONESBORO POLICE PENSION FUND
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WHEREAS, participants of the Jonesboro Police Pension Fund believe it is advantageous to provide benefits for the surviving spouses (of members) who remarry after retirement; and,
WHEREAS, the Jonesboro Police Pension Board had determined it will seek this benefit as set forth by Arkansas Code Annotated 24-11-425(d)(1), which is also known as the “remarried provision”, and in accordance with the rules and regulations set forth by the Arkansas Fire and Police Pension Review Board, and in demonstration of their intent have adopted the attached resolution; and,
WHEREAS, to enable the adoption of the remarried provision, the certification of the City Council of Jonesboro, Arkansas is required to evidence the understanding of the City Council of the risks involved in the use of the alternate cash flow valuation method; and,
WHEREAS, an actuarial study conducted by Osborn, Carreiro & Associates, Inc. determined that use of the alternate cash flow valuation method was appropriate, and that use of the alternate cash flow method would support any benefit increases resulting from adoption of the “remarried provision”;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF JONESBORO, ARKANSAS THAT:
Section 1: The use of the alternate cash flow method is accepted and the Council understands the risks involved in the use of this method for actuarial purposes; and,
Section 2: Council supports the adoption of the “remarried provision” for determination of benefits for participants in the Jonesboro Police Pension Fund.
PASSED AND APPROVED this 16th day of February, 2010.