Money

Corry City Council passed a resolution Monday to distribute state aid pension funds to the police, firemen and nonuniform employee pension plans for 2019.

State Aid is a program from the Pennsylvania Municipal Retirement System to help municipalities in funding pension plans. The money is generated from the proceeds of an insurance premium tax on foreign casualty insurance companies.

The resolution approved the allocation of 180,652.13 in General Municipal Pension System State Aid to be distributed between the Police Pension Fund and the Fireman's Pension fund.

The nonuniform employee pension plan is fully funded and does not need additional funds this year, City Manager Jason Biondi said.

The Police Pension Fund is receiving a distribution of 65,980 and the Fireman's Pension Fund is receiving 114,672.13.

Last year, state aid received was $174,271.46, more than the minimum allocation at that time, and was distributed evenly between the three funds but that was not the case this year, Biondi said.

In 2017, the city received $166,425.55 and in 2016 the city received $165,308.57.

In order to meet the minimum obligation this year, the city approved a contribution from the general fund to the Fireman's Pension Fund for $1,900.87.

"Compared to most municipalities, our pension fund is in really good shape, all three of them," Biondi said. 

Actuary reports are done every two years to evaluate the value of a pension fund. It determines the percentage of funded benefits of each fund and how much the city is responsible to fund.

The city just received the police actuary report, which states that it has a funding ratio of 98.1 percent.

The last actuary report done on the nonuniform and firemen's pension funds was in 2017. 

At that time, the nonuniform pension funding ratio was 123.4 percent and the firemen's funding ratio was 88 percent.

The next one will be done in late fall 2020, and Biondi said the expectations are that the funding ratio for the nonuniform pension will have gone down and the firemen's will have gone up.

 

 

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