§ 1.09. Employer contributions.

The employer shall contribute monthly to the fund an amount equal to a certain percentage of the monthly earnings of members of Division A and members of Division B, based on a rate to be known as the employer contribution rate. The employer contribution rate applicable for any fiscal year shall be established by the pension commission prior to the commencement of such fiscal year on the basis of an actuarial valuation of the system made as of a valuation date within three (3) years of the beginning of such fiscal year. The employer contribution rate shall be determined actuarially based on a normal contribution rate and five percent (5%) of unfunded past service liabilities as of the date an actuarial valuation is made.

The normal contribution rate and unfunded past service liabilities shall be determined by a qualified actuary on the basis of such actuarial assumptions last adopted by the pension commission prior to said actuarial valuation date and on the basis of accepted actuarial methods. Based on the employer contribution rate, the pension commission shall determine its best estimate of the contribution required by the employer for the fiscal year then beginning and of estimated expenses of the pension commission. Such estimated amounts shall be included in the budget of the employer for such fiscal year, and the employer shall make actual employer contributions to the fund each month based on the employer contribution rate applicable to earnings of the members in the month.