A first Class investment management platform. Professional plan administration and consulting services. Actuarial services offered through the MRT pension plan administrator.

What is MRT?

The MRT is a comprehensive, professionally managed pension program, specifically designed to meet the unique investment and administrative needs of municipal government. The overall investment design of the MRT promotes an effective risk posture, while maximizing growth potential and containing costs.

History

Nearly 40 years ago, the Pennsylvania State Association of Boroughs recognized that its membership faced numerous challenges in meeting the pension needs of their employees. In response to these conditions, the association took the initiative to create a state-of-the-art pension program for all local governments.

The goal was to develop a pension program that would provide first-class investments, ease the administrative burden on the local governments, and be affordable. The Municipal Retirement Trust (MRT) meets these goals and now serves over 200 municipal governments.

The MRT is based in Harrisburg, yet our staff regularly visits counties across the Commonwealth. The staff takes great pride in its ability to communicate with municipalities and the employees that are served under the plan. Our team strives to educate local governments on new services and regulatory changes that could impact the bottom line. Once a municipality joins the MRT, the relationship becomes a partnership that is built on professionalism and trust.

Welcome to the Municipal Retirement Trust (MRT)!

A pension plan provider should be committed to personal service and understand the many intricacies involved with Pennsylvania municipal governments. The Municipal Retirement Trust excels in these areas. The MRT exclusively focuses on the very specialized needs of boroughs, townships, cities, authorities and councils of governments throughout Pennsylvania.

Our success is the product of due diligence and innovation as pension issues have evolved over the last few decades. Most importantly, we listen to our members and strive to provide them with a reasonably priced multi-employer trust.

It is a great source of pride when we receive positive feedback from our existing members, who then recommend the MRT to another municipal colleague. I invite all non-members, as they conduct their fiduciary responsibility, to call our team of professionals and judge for themselves.

As always, the MRT will continue its important mission of assisting local governments in providing their dedicated employees a cost-effective retirement plan.

Sincerely,

Ralph P. Moore
Board Chair

Q. How do MRT investment and administrative fees compare to other pension providers?
A. As a multi-employer Trust, the MRT aggregates its buying power to achieve economies of scale, and therefore, our fees are significantly lower than providers who negotiate a contract unilaterally.

Q. What classes of municipalities can join MRT?
A. All municipal entities, including boroughs, townships of the 1st and 2nd class, cities, authorities and COGS can and do belong to the MRT.

Q. If my municipality is enrolled in the Balanced Account can we change to the Fixed Account?
A. Yes, investment options may be changed once a year.

Q. How often will a municipality receive pension plan financial account statements?
A. Net asset statements are sent on a monthly basis, approximately the 15th of the month.

Q. When do retirees receive their monthly payments?
A. Pension payments are mailed the beginning or the end of the month, depending upon what is stated in the plan document.

Q. Who sends out the required retiree income tax information?
A. PSAB-MRT mails each retiree and the municipality a copy of 1099s and W-2s in January of each year.

Q. What if a municipality does not have pension information that the municipal auditor or the State Auditor General needs?
A. Call us and we will assist you throughout the audit process.

Q. My council/supervisors/commissioners want more detailed information about the Balanced Account money managers, asset allocations, etc.. Can MRT supply this type of information?
A. Yes, we can provide additional reports on a monthly, quarterly or yearly basis.

Q. Our employees do not understand their pension plan. How can we answer all their questions?
A. MRT representatives are always available to meet with municipal officials and employees and discuss details of their pension plan.

Q. Who in the municipality should be the primary point of contact regarding pension issues?
A. Per Act 205, the Chief Administrative Officer (CAO) is the person designated by the municipality as having the authority to execute all administrative affairs for their pension plans. The CAO is generally the manager, secretary, treasurer or other designated municipal official.

Act 44 – of 2009, amends and makes significant changes to the Municipal Pension Plan Funding Standard and Recover Act (Act 205). The Act provides actuarial tools to provide fiscal relief to local governments operating public pension plans. It also regulates Deferred Retirement Option Plans (DROPS – see definition below), establishes conduct and disclosure standards for pension plan professional service contracts and provides special remedies to the cities of Philadelphia and Pittsburgh.

Act 51 – of 2009. The Act specifically repeals the current Act 600 Killed in Service Benefit from Police pension plans. The Killed in Service Benefit will now be funded by the Commonwealth, and will be equal to the monthly salary of the deceased officer, adjusted annually for the cost of living. The benefit is payable to the deceased’s surviving spouse or, if there is no surviving spouse, to the deceased’s minor children under the age of 18. If those children are attending college, they can receive the benefit up to the age of 23. In addition to law enforcement officers, the new benefit applies to paid firefighters, ambulance service members, and rescue squad members.

Act 205 – the Municipal Pension Plan Funding Standard and Recovery Act of December 1984. The Act controls pension funding in Pennsylvania and provides for reporting of actuarial information and for a recovery program for qualifying municipalities.

Act 600 – the Police Pension Fund Act of May 1956. The Act states that all boroughs, towns, and townships with three or more full-time police officers, or a regional police force, must establish a police pension plan in accordance with the provision of this Act. In addition, boroughs, towns and townships with fewer than three full-time police officers may establish their plans in accordance with this act.

Accrued Benefit – the portion of the participant’s retirement benefit that is attributable to service completed before the calculation date.

Actuary – a business professional who calculates the financial impact of risk and uncertainty. Actuaries mathematically evaluate the likelihood of events and quantify the outcomes in order to minimize financial losses.

Chief Administrative Officer – the person with primary responsibility for the execution of the administrative affairs of the pension plan.

Cost of Living Increases (COLAs) – an optional provision of some plans that provides for an annual increase of retiree benefit payments, which may not exceed the percentage change in the Consumer Price Index (CPI).

Deferred Retirement Option Plans (DROPs) – a period of time (may not be longer than 5 years) during which participants
who have reached their normal retirement date “retire” for the purposes of the pension plan and yet continue to work for a municipality for a set period of time.

Defined Benefit (DB) Pension Plan – a retirement plan designed to pay a specific benefit to a retiree upon retirement. The benefit is typically payable monthly for the remainder of the retiree’s lifetime.

Defined Contribution (DC) Pension Plan – a retirement plan designed to accept fixed contributions, which are allocated to individual accounts to provide a benefit upon retirement. The benefit is typically paid in a lump sum.

Employee Contributions – contributions that are typically deducted from the employee’s paycheck on an after-tax basis, but may be deducted on a tax-deferred basis for federal tax purposes. Can be mandatory or voluntary, depending upon pension plan requirements.

Employer Contributions – contributions that the employer makes to its employees’ pension plans.

Funding Requirements for Pensions – the amount to be contributed/deposited in employees’ retirement accounts. For Defined Benefit plans the amount is calculated by an actuary based upon certain facts and assumptions (e.g. return on investments, future salary increases, timing and likelihood of employee termination/death). For Defined Contribution plans the amount is typically fixed by the plan provisions as a percentage of pay or a flat dollar amount.

Killed in Service Benefit (Death Benefits) – a benefit for spouses or dependent children of police officers that are killed in service.Act 51 of 2009 states that these benefits will be paid by the State.

Minimum Municipal Obligation (MM0) – The MMO determines the amount of money that must be contributed to a pension plan by a municipality for a given year.

Pensions Plans and Unions – most unions bargain over pension benefits. An actuarial study must be prepared and presented to the governing body prior to the union adopting or agreeing to changes. Also, a municipality must verify that changes requested by the union are in compliance with state and federal laws.

Plan Document – a written compilation of all the benefits and administrative provisions of the pension plan and the legal governing document for the pension plan.

Smoothing – an accounting/actuarial process that averages financial data over several years, rather than showing specific financial data each year.

State Aid – Pennsylvania provides for an annual allocation to municipal pension plans from a special fund dedicated exclusively to fund retirement plans. The source of the fund is taxes paid on foreign fire and casualty insurance premiums. The amount each municipality receives depends on such factor as the financial need of its plans, the number of full-time employees participating in a plan, if the plan is an eligible plan, if the plan has been in effect for three or more years, total payroll of eligible plan members, and if there is an Order to Show Cause outstanding due to non-compliance with state regulations. State Aid is usually dispersed to municipalities around October 1 of every year and must be deposited in the pension plan within 30 days of receipt.

Vesting – the participant’s non-forfeitable right to receive a benefit, provided that the participant survives until benefit eligibility.

The following services are all-inclusive under the MRT Administrative Services Menu:

Preparation of annual financial statements (including GASB 3, 25, 27 and 40)

Preparation of AG- 385, AG- 490, and AG-64 certification forms

Preparation of annual Minimum Municipal Obligation (MMO) per ACT 205

Preparation of Defined Contribution plan annual employee allocation statements

Maintenance of active member and retiree rosters

Assisting clients during Auditor General audits

Notification of legislative/regulatory changes

Calculations of pension benefit/refunds for new retirees or terminated employees

Distribution of monthly account statements/ transaction summaries, portfolio asset allocations, retiree payments and required IRS tax forms

Competitively priced actuarial services including preparation of Act 205 Report, Actuarial Valuation Report, Cost Studies, etc.

The MRT team has proudly maintained an exceptional record of integrity and an unmatched dedication to personalized service. Our high client retention rate is proof of our outstanding service to our clients.

Our team works with municipal officials to promote efficient compliance activities and help to identify available funding resources. Many municipal administrators are unable to effectively keep up with evolving laws and legal standards associated with municipal pension plans. Our combined team of experts will meet with you on an individual level and provide clear interpretations on issues that are pertinent to your specific pension plan.

The MRT team is always available to assist you.

	Merrill Lynch Financial Consultants William Bender Peter Butera
	Thomas J. Anderson Compliance Consultants Thomas J. Anderson Scott Rhoads
	MRT Marketing & Administration Christopher Cap Linda Costa Joseph Scott Bonnie Smith
	Hamilton & Musser Accounting Firm Robert Mast Tennile Burkhardt

]]> http://psabdns4.com/mrtpensions.org/our-team/feed/ 0 http://psabdns4.com/mrtpensions.org/investment-options/ http://psabdns4.com/mrtpensions.org/investment-options/#comments Sun, 05 Sep 2010 20:34:11 +0000 Webmaster http://psabdns4.com/mrtpensions.org/?p=52 Investment decisions can be time-consuming and confusing. To simplify this process, the MRT offers two (2) investment options for municipalities to choose from:

Balanced Account
This account is a diversified portfolio and invested in approximately 65% equities and 35% in fixed or bond investments. Multiple investment managers in specific asset classes (e.g. large cap value, large cap growth, small cap core, etc.) manage the equities portion of this account.

Fixed Account
This account is primarily invested in fixed or guaranteed rate of return investments such as Intermediate Term Bond markets, but not in the equities market.

Each municipality has the opportunity to allocate their pension plan assets according to their distinct investment goals and objectives. The two investment options above allow municipalities to select the conservative Fixed Account or the more aggressive Balanced Account.

Both accounts are invested in accordance with sound investment practices that emphasize long-term growth fundamentals and safety of assets. Our accounts are professionally managed by some of the top
investment management firms in the country.

The MRT is committed to regularly monitoring financial market positions, portfolio risk posture, diversification of assets, and investment manager performance. Both quantitative and qualitative research models are utilized to maximize rates of return.

MRT Advisory January 2013

MRT Advisory December 2012

MRT Advisory November 2012

October 2012

September 2012

March 2012

Bob Doll Weekly Investment Commentary – March 7, 2011

Bob Doll’s 2011 Investment Market Forecast – 01/19/2011

Act44 Policy Shortform

Act44 Shortform Resolution

Investment Policy Statement

Chris Cap
Chief Operations Officer
717-236-9526 or 800-232-7722, ext. 43
ccap

Linda Costa
Director of MRT Accounts
717-236-9526 or 800-232-7722, ext. 28
lcosta

Joseph Scott, Jr.
Municipal Pensions Outreach Coordinator
717-236-9526 or 800-232-7722, ext. 46
jscott

Additional Information
2941 North Front Street
Harrisburg, PA 17110
Fax 717-236-8164