Title
Commending the City of Philadelphia Board of Pensions and Retirement for their prudent actions over the years to increase the Pension Fund's actuarial funding ratio.
Body
WHEREAS, Led by the City of Philadelphia Board of Pensions and Retirement, the combined efforts of the City Administration, the Philadelphia Municipal Unions, City Council, the State Legislature, and all interested parties has resulted in moving toward securing the long-term financial stability of the Philadelphia Municipal Pension Fund for the employees and taxpayers of the City of Philadelphia; and
WHEREAS, The Philadelphia Municipal Pension Fund (Pension Fund) achieved historical investment returns over 29 percent for the fiscal year ending June 30, 2021; and
WHEREAS, The Pension Fund had its actuarial funding ratio increase from 44.8 percent in 2016 to 55.2 percent for the fiscal year ending June 30, 2021. For the same period, the Pension Fund's market value funding ratio increased to 61.1 percent, the highest market value for the Pension Fund in over 20 years; and
WHEREAS, Since Fiscal Year 2014, the Pension Fund has reduced investment fees from 0.69 percent of assets to its current 0.30 percent of assets. This represents savings of more than $90 million over the past six fiscal years; and
WHEREAS, The Pension Fund has had four consecutive years of net positive cash flow excluding investment earnings. The Pension Fund went from having one of the worst cash flows among large pension funds to having one of the best; and
WHEREAS, Led by the Pension Board, pension reform efforts have been a collaborative effort of the City Administration, Municipal Unions, City Council, the State Legislature, and other interested parties. A key aspect of the reforms included additional dedicated streams of revenue to pay down the unfunded actuarial liability of the Pension Fund more aggressively; and
WHEREAS, The pension reforms have had a significant positive effect on improving the long-term sta...
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