§ 81.7. Retirement funds and accounts.
(a) The Board will consolidate for investment purposes the assets of the various plans. The Board will account separately for each plan’s assets in a municipal account and each individual active member, inactive member and vested member’s assets in a member’s account. The Board maintains pooled accounts for retired members (the Retired Members’ Reserve Account) and for the funding of disability benefits (the disability reserve).
(b) When a municipality withdraws the administration of its plan from the System, the municipality shall only be entitled to the assets credited to the plan’s municipal account and the plan’s members’ accounts in accordance with the provisions of the law. Assets that are actuarially determined by the Board’s actuary to be matched to a withdrawing plan’s retired members as of the effective date of withdrawal will also be returned to the plan in accordance with the law provided there are sufficient funds in the retired member’s reserve account to meet the actuarially determined liability of all retired members of the System, as of the date of withdrawal; otherwise payment shall be on a prorated basis.
Source The provisions of this § 81.7 amended June 23, 2000, effective June 24, 2000, 30 Pa.B. 3168. Immediately preceding text appears at serial page (260163).
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