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UAAL |
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The city is planning to prefund a portion of this liability by issuing pension obligation bonds in the amount of $200 million over several years and eliminate the remaining UAAL by proposing to create a second tier of pension benefits for new hires. 8 billion unfunded actuarial accrued liability (UAAL) of the city's municipal employee pension system by an estimated one-half, that program and the police officers' and firefighters' pension plans all face potentially sizeable increases in UAAL over the near term. However, while the city has made, and continues to make, its ACs pursuant to the city's retirement ordinance (and in accordance with Governmental Accounting Standards Board rulings) which stipulates the city's contribution rate, the city's AC has been below the ARC necessary to amortize the UAAL within a 30-year period, as is typical; for FY 2005 the city's AC equaled 73% of the ARC, while the FY 2006 AC was down to 60% of the ARC. |
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