You need a partner to help you manage all aspects of your plan, not just manage the money.
Your Investment Advisor should perform the following duties:
- Be the liaison between the plan's investment managers, the plan's actuary, solicitor and other professionals providing services to the plan.
- Assist you with the selection of investment management firms.
- Set the asset allocation model for the plan to meet the plan's interest assumption at an acceptable level of investment risk.
- Serve as an investment fiduciary and be an active participant on your pension committee, as a non-voting member.
- Assure that plan members understand how the plan is funded and when a member contribution is required.
- Monitor the performance, fees and services of the investment managers.
- Prepare an Investment Policy Statement for the plan fiduciaries and assure that the investment managers adhere to it.
- Have a thorough understanding of Acts 600, Act 205, Act 44 and other state and federal legislation impacting police pension plans.
- Be ready and able to provide retirement counseling and education to the plan members.
FRS Capital management has the experience and expertise to fulfill all of the roles and provide additional services necessary for the successful management of an Act 600 police pension plan.
Act 600 - Quick Facts:
- If you have three or more full-time officers, it is required you offer an Act 600 plan with mandatory benefits including 50 percent of the final average salary after 25 years of service and attaining age 55. Other mandatory benefits include disability and survivor benefits.
- Optional benefits include cost of living increases, length of service increments, and retirement at age 50 with 25 years of service. Municipalities may also offer an early retirement after 20 years of service with a benefit reduction.
- While these plans are partially funded by the state and officers, there is a Minimum Municipal Obligation (MMO), which must be incorporated into the municipal budget.
- We can assist in the RFP process and the other requirements of Act 44.
Our management techniques will optimize how much aid you receive from the State and coordinate asset allocation modeling with your Act 205 actuarial assumptions, potentially reducing officer and municipal contributions.
FRS Capital Management has created the Keystone Pension Portfolio (KPP). The KPP is a Pension Management System designed specifically for Municipal Defined Benefit Pension Plans.
For more information on the KPP click here.
