Actuarial Study Clause Samples
An Actuarial Study clause requires that a formal analysis be conducted by a qualified actuary to assess financial risks, liabilities, or future obligations associated with a contract or plan. Typically, this clause applies to insurance agreements, pension plans, or other arrangements where long-term financial projections are necessary, and it may specify the frequency, scope, or standards for such studies. Its core function is to ensure that all parties have reliable, expert-driven data to inform decision-making and manage financial risk effectively.
Actuarial Study. The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of 7% it must achieve to fund the retiree health benefit provided in this Section. The City will conduct an actuarial study by an outside actuary of the retiree medical plan prior to June 30, 2002. After that time, the City will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and City agree that if the Actuary concludes that the City’s funding of this benefit by contribution of 1% of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the City shall not be required to increase its funding for this benefit to more than 1% of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health premiums, the City and the Union agree to meet and confer regarding the City’s distribution of its 1% contribution.