Consider for adoption a Resolution required by State Act 205 allocating pension state aid and setting employee contributions for 2020.

RESOLUTION

WHEREAS, the Township of Lower Merion has notice of its 2019 Commonwealth allocation from the General Municipal Pension State Aid program; and

WHEREAS, Act 205 of 1984 provides that pension allocations must be deposited in municipal pension plans within 30 days of receipt; and

WHEREAS, Act 205 of 1984 requires that the Municipality’s governing body authorize by Resolution the amount that each pension plan will receive; and

WHEREAS, calculations from the Township Actuary have been received regarding the amount to be deposited to the pension plans; and

WHEREAS, also as a result of the Township Actuary’s analysis the Lower Merion Workers Association (WA), non-uniform employee pension contributions for 2020 will be as follows: for those employees hired prior to January 1, 2003, 4% (0 to 4.99 years of credited service), 4% (5 to 9.99 years of credited services), 3% (10 to 24.99 years of credited service), 2% (over 25 years of credited service).  The employee pension contribution is 5% for employees hired after 2003.  These contribution rates may be revised prior to December 31, 2019.

WHEREAS, also as a result of the Township Actuary’s analysis, the 2020 non-contractual non-uniform/ employee pension contributions to the Township Employee Pension Fund will be follows: for those employees hired prior to January 1, 2003, 4% (0 to 4.99 years of credited service), 4% (5 to 9.99 years of credited services), 3% (10 to 24.99 years of credited service), 2% (over 25 years of credited service).  The employee pension contribution is 5% for employees hired after 2003.  These contribution rates may be revised prior to December 31, 2019.

WHEREAS, also as a result of the Township Actuary’s analysis, the police officer employee pension contributions to the Township Municipal Police Pension Fund will be 5.0% in 2020.  This contribution rate may be revised prior to December 31, 2019.

NOW THEREFORE, the Board of Commissioners of the Township of Lower Merion hereby resolves that the 2019 Commonwealth allocation of $2,642,177.52 from the General Municipal Pension System State Aid program will be distributed to the Township’s Police Pension Fund, $1,651,234.52 and Employee Pension Fund, $990,943.  In addition, Township staff is authorized to contribute $355,100.48 from the Township’s General Fund to the Police Pension Fund in order to fully fund the 2019 Minimum Municipal Obligation.