The city of Corry will pay $2,375 to cover next year’s minimum municipal obligation for pension plans for city police, city firefighters and nonuniformed employees.
Based on actuarial figures compiled in 2007, the city’s total MMO for the three pension funds in 2010 will be $137,847.
The city recently received state aid totaling $145,953. Of that amount, the city may use $135,472 toward its pension obligation, City Administrator Gerry Dahl said. That leave the city responsible for a MMO payment of $2,375.
“We were pleased to receive that check, even though the state hasn’t passed its budget yet,” Dahl said.
The remaining state aid will be used by the city to pay its MMO for 2011, he said.
A minimum municipal obligation is the smallest amount a municipality is required by the state to contribute to a pension plan set up for its employees.
The MMO for the Police Pension Fund in 2010 will be $39,157, which is $3,394 less than the 2009 MMO of $42,551.
The decrease is the result of the city eliminating one of its police positions in 2009. The city now has 11 officers, compared with the 12 officers that served the city in 2008, Dahl said.
The 2010 MMO for the Firemen’s Pension Fund will be $98,690, an increase of $5,769 over the 2009 obligation of $92,921.
The city has its 2010 MMO for the Nonuniformed Employees Pension Fund’s MMO covered. The city will not have to pay anything — the same as this year.
Actuaries analyze the financial consequences of risk. They use mathematics, statistics, and other risk factors to study uncertain future events, especially those that involve insurance and pension programs
Every two years, actuarial data is compiled to determine the city’s MMO for its pension plans. The 2010 MMO is based on information compiled for the city by Muckinhaupt Benefit Group for the period between Jan. 1, 2007, and Jan. 1, 2009.
The latest two-year figures compiled by the city’s actuarial firm must be submitted to a division of the state’s auditor general’s office by March 15, 2010. Those figures will determine what the city’s MMO will be for 2011 and 2012, Dahl said.
Because the economy has faltered mightily since the last actuarial data was released, the city is bracing itself for higher MMOs in the near future.
See the Journal's Wednesday, October 7th edition for full story.