SB 268 - This act increases the special advisors benefit within the St. Louis City Police Retirement System from ten dollars to fifteen dollars monthly multiplied by the number of years the member is past the age of sixty.
The act also provides that for the required annual valuation of the assets and liabilities of the system, for plan years beginning on or after October 1, 2007, the actuary required to make the valuation shall determine the normal cost for such year using the entry age normal actuarial cost method. Under such method, the actuarial present value of the projected benefits for each individual included in the valuation shall be allocated on a level basis over the service of the individual, between entry age and assumed exit age, and the portion of such value allocated to a valuation year shall be the normal cost. For plans years before October 1, 2007, the actuary shall continue to make the valuation by determining the normal contribution rate, as described within.
The act also provides that the actuary is no longer required to compute the accrued liability contribution rate, as defined within, at the time of the required valuation, but instead, for plan years beginning on or after October 1, 2007, shall determine the actuarial accrued liability under the entry age normal actuarial cost method, as previously described. Also, for such plan years, the actuary shall determine the initial unfunded accrued liability as the amount by which such liability exceeds the actuarial value of the assets of the retirement system, and the amortization payment for such liability shall be determined using a thirty-year period starting on October 1, 2007.
The act also provides that, for plan years beginning on or after October 1, 2007, the total amount payable to the system for each year shall be no less than the greater of the sum of the normal cost and the accrued liability contribution, as previously described, or the amount required to provide the benefits payable during the plan year.