Pennsylvania Code
Title 16 - COMMUNITY AFFAIRS
Part IV - Public Employee Retirement Commission
Chapter 203 - ACTUARIAL AND FINANCIAL REPORTS ON MUNICIPAL EMPLOYE PENSION SYSTEMS
Section 203.2 - Procedures for the preparation of actuarial valuation report

(a) Actuarial value of pension plan assets. The actuarial value of pension plan assets are the value of cash, investment securities and other property belonging to the municipal pension plan according to a method for valuing assets adopted by the governing body of the municipal pension plan upon the recommendation of the actuary. The method for valuing assets shall be adequately disclosed in the accompanying documentation or exhibits and may not produce a result that in total is greater than 120% or less than 80% of the fair market value of the assets of the municipal pension plan.

(b) Actuarial payroll. If the amount of the payroll used in the preparation of the actuarial valuation report differs from the amount of the gross payroll of the active members of the pension plan, the actuary shall disclose the basis for the difference in the payroll amounts.

(c) Aggregated amortization target date. In an actuarial valuation report prepared after 1985, amortization target dates for each increment or decrement of the unfunded actuarial accrued liability occurring since the last actuarial valuation report filed under section 201 of the act (53 P. S. § 895.201) shall be established under section 202(b)(4) (53 P. S. § 895.202(b)(4)) of the act. An actuarial valuation report prepared after 1985 shall also establish an aggregated amortization target date for increments or decrements of unfunded actuarial accrued liability occurring since the actuarial valuation report prepared for the 1985 plan year. The aggregated amortization target date shall be based on the net amortization contribution of the individual amortization schedules being aggregated and shall maintain the actuarial present value equivalency of the individual amortization schedules being aggregated.

(d) Cancellation of amortization schedules in certain instances. If, in the preparation of an actuarial valuation report, the assets of the pension plan are determined to be in excess of the actuarial accrued liability, amortization schedules established under section 202(b)(4) of the act shall be cancelled and the funding adjustment to the minimum municipal obligation to the pension plan specified in section 302(c)(3) of the act (53 P. S. § 895.302(c)(3)) shall be applied.

(e) Treatment of funding deviations. If funding provided to a municipal pension plan exceeds or is less than the full financial requirements of the pension plan determined under section 302(b) of the act, the amount of the funding deviation shall be treated as an actuarial gain or loss and amortized under section 202(b)(4) of the act.