§ 12. [Financial objective.]

(a)

The financial objective of the retirement system shall be to receive contributions each fiscal year which are sufficient to (i) fund the actuarial cost of benefits likely to be paid on account of service earned by members during the fiscal year, and (ii) fund the unfunded actuarial cost of benefits likely to be paid on account of service earned by members prior to the fiscal year over a period of not more than forty years.

(b)

Contribution requirements shall be determined by annual actuarial valuation using a generally recognized level percent of payroll actuarial cost method.

(c)

The board shall certify to the city commission the amount of annual contribution needed to meet the financial objective and the city commission shall appropriate and cause the contribution to be paid to the retirement system.