FUNDING; INVESTMENTS

New Orleans City Code ch. 114, art. III, div. 10

in effect

New Orleans City Code § 114-201 System to maintain three accounts.

Sec. 114-201. - System to maintain three accounts. The system shall, for the benefit of each member, maintain three individual accounts for bookkeeping purposes: A. A member account to which (1) member contributions and interest thereon shall be allocated, including any amount paid by such member for the purchase of creditable service in accordance with division 4 hereof, (2) any withdrawals or refunds or distributions made on account of his separation from service or death shall be charged, and (3) any transfer from the pension accumulation account on account of a member's repayment of his member account balance shall be made. B. A pension accumulation account to or from which (1) employer contributions attributable to such member, income and gain thereon shall be credited, (2) any gift or similar amount shall be credited, (3) any single-sum death benefit shall be charged, (4) an amount equal to interest accrued with respect to a member account and interest accrued on the mean amount of the reserves in the annuity reserve account shall be charged, and (5) a transfer to a member's member account shall be made on account of his repayment of his member account. C. An annuity reserve account, which (1) shall be credited with the balance of the member's member account and pension accumulation account as of his retirement, and (2) shall be charged with such member's retirement allowance or other benefit payable hereunder. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-202 Member account interest.

Sec. 114-202. - Member account interest. Interest shall be credited to each member account as of each December 31st, at the rate determined by the trustees from time to time. Such crediting shall cease upon the earlier of (A) the date on which no amount is credited to such account, (B) a member's death or retirement date or other commencement of benefits hereunder, or (C) five years after his separation from service, if such member is credited with less than five years of creditable service as of his separation date. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-203 Member contributions.

Sec. 114-203. - Member contributions. A. Each active member shall contribute to the system member contributions in an amount equal four percent of his contribution compensation; beginning January 1, 2012, and ending December 31, 2012, such contributions shall equal five percent of contribution compensation; beginning January 1, 2013, and thereafter, such contributions shall equal six percent of contribution compensation. B. Each active member's employer shall automatically deduct such contributions from his contribution compensation on a pay period basis, and each such member shall be deemed to have consented to such deduction, without the necessity of further action. Payment of any amount, allowance, withdrawal or other benefit hereunder shall be deemed to constitute a discharge and release of any claim or demand related to such deduction. C. Each employer shall remit member contributions to the system at the time or times designated by the trustees, but no less frequently than monthly. D. Member contributions hereunder are intended to be "pick-up contributions" and shall be made and administered in the manner prescribed under Tax Code Section 414(h)(2). E. Member contributions hereunder shall be deemed part of a member's compensation for purposes of determining whether such compensation is less than the minimum amount required by law to be provided. Payment of a member's compensation due for any period, reduced as provided herein, shall be deemed to discharge and acquit the city and his employer with respect to services rendered by such member during such period, except as to any prospective claim for benefits or payments hereunder. F. The trustees shall adopt such procedures as may be necessary for the collection and remission of member contributions hereunder. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-204 Employer contributions.

Sec. 114-204. - Employer contributions. A. The city or other employer of each active member shall contribute to the system. B. Each year, the system's actuarial report shall include the amount actuarially necessary, when aggregated with member contributions, to provide for the payment of benefits accrued hereunder. Such amount shall be determined in accordance with generally accepted actuarial principles, consistent with the actuarial standards of practice, as promulgated from time to time by the actuarial standards board, and the statements of the governmental accounting standards board as they relate to the disclosure, accounting, and funding of pension plans, as the same may be amended, superseded or replaced from time to time. C. The trustees shall annually review the system's actuarial valuation and determine the amount of the annual contribution necessary and appropriate hereunder. D. Contributions hereunder shall ordinarily be expressed as a uniform percentage of each active member's contribution compensation. E. During the city's annual budgeting process, the board may be authorized to request an addition to the annual required contribution rate (ARC) to specifically fund cost-of-living increases or bonuses. The funding shall come in the form of an increase in the city or other employer contribution rate. The increase shall be no more than one-half of one percent of the system's actuarial valuation. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 29248, § 1, 11-3-22)

New Orleans City Code § 114-205 Appropriations.

Sec. 114-205. - Appropriations. On or before September 1st each year, the trustees shall file with the city council a certification of the amount of the contribution determined in accordance with section 114-204 hereof applicable for the immediately succeeding year and the additional amount required in connection with the administration and operation of the system for such year. The amount so certified shall be included in the annual budget of the city, and the city council shall appropriate such amount as shall be necessary to cover the expenses and benefits payments, including cost-of-living increases or bonuses, of the system prior to the first regular budgetary receipts. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 29248, § 1, 11-3-22)

New Orleans City Code § 114-206 Custodian.

Sec. 114-206. - Custodian. The director of the department of finance shall be deemed the custodian of the funds comprising the system, from time to time. Unless the trustees have authorized electronic or other means of payment, all payments from such funds, other than benefits and payments shall be made only upon presentment of a regular voucher signed by two persons designated by the trustees. A duly attested copy of a resolution designating the persons authorized to sign such vouchers shall be filed with the director of the department of finance, from time to time, as authority for making payments hereunder. No voucher shall be drawn unless it shall have been previously authorized by the trustees. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-207 Management of funds.

Sec. 114-207. - Management of funds. A. The trustees shall be and act as the trustees of the funds comprising the system, from time to time, including amounts credited to the accounts established hereunder. In such capacity, the trustees shall possess the discretionary authority to invest and reinvest such funds. When exercising such authority, the trustees shall (1) exercise judgment and care under the circumstances then prevailing, which a reasonable individual of ordinary prudence, discretion and intelligence would exercise in the management of like enterprises, and (2) act solely in the interests of members and their annuitants and beneficiaries for the purposes of providing benefits and paying administrative costs hereunder. B. The trustees shall possess all powers ancillary to or necessary for such purpose, including without limitation: 1. The power to appoint one or more sub-custodians to hold all or a portion of the funds constituting the system, from time to time, including the apportionment of funds among such sub-custodians and the removal thereof; 2. The power to adopt and modify, from time to time, an investment policy or determine other investment goals and objectives; 3. The power to designate or remove investment managers and to monitor and evaluate the performance thereof; 4. The power to employ one or more experts or other persons to assist in the performance of their duties and obligations hereunder; and 5. The power to delegate to one or more officers or employees of the system the authority to authorize and direct routine disbursements and payments from the system, subject to such controls and limitations as the trustees deem necessary or advisable. C. The trustees may enter into agreements with one or more investment managers, in their discretion. The trustees shall determine the portion of the funds then comprising the system allocable to any such manager and shall possess the authority to increase or decrease the amount of such funds, in their discretion. Any investment manager appointed hereunder shall be charged with the management of the funds so allocated in accordance with the investment policy adopted by the trustees. An investment manager appointed hereunder shall not have physical custody of the funds of the system, including those funds allocated to such manager for investment purposes hereunder and shall have no responsibility for the administration and operation of the system, the safekeeping of the funds comprising the system or the management and investment of the portion of the system not otherwise allocated to such manager hereunder. D. Any financial consultant employed by the trustees hereunder may advise the trustees as to the selection and removal of investment managers, the terms and conditions of any investment policy adopted hereunder, and such other matters as the trustees deem necessary or appropriate. E. For the purpose of satisfying the cash requirements of the system, including the payment of allowances, benefits and other amounts hereunder, not more than ten percent of the assets comprising the system may be held uninvested in cash or cash equivalents. For this purpose, any amount allocated to an investment manager that is held in cash or cash equivalents pending investment shall not be taken into account. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

Source: City of New Orleans, Code of Ordinances and Home Rule Charter (Municode Library, library.municode.com)URL: https://library.municode.com/la/new_orleans/codes/code_of_ordinances?nodeId=PTIICO_CH114PE_ARTIIIRESY_DIV10FUINFetched: 10/28/2026