More than 32 years ago, the PA State Association of Boroughs recognized that its membership faced unique challenges in meeting the pension needs of their employees. The Board took the initiative to create a state-of-the-art pension program for its members.
Their goal was to develop a program that would provide first-class investments, ease the administrative burden on the local governments, and be affordable. The Municipal Retirement Trust meets that goal. The Trust is a turnkey approach to pension plans with two distinct components that make it exceptional— Administration and Investments.
Administration
The Municipal Retirement Trust, created in 1972, is sponsored by the Pennsylvania State Association of Boroughs and supervised by a twelve-member Board of Trustees. It is comprised of local government officials that are knowledgeable in municipal pension plan issues. The administration of the pension plan is designed to ease the burden on municipal staff while providing all the necessary materials and reports required by the state. These reports and services are provided through a pension administrator that specializes in PA municipal pension administration and regulatory requirements.
Some of the areas covered:
Monthly statements of fund transactions
Monthly retiree payments with federal reporting
Qualified municipal pension plan document (per IRS Code)
Benefit calculations
Easy access to pension administration specialists and consultants who can assist you in plan design and maintenance
Legislative and Regulatory Updates
Regular plan review and revisions
Assistance in maintaining records in accordance with State Auditor General(Actuarial and consulting services are available through a separate contract, usually at discounted fees)
Investments
The structure of the Trust is very sophisticated. The investment managers and support professionals involved with the Trust have specific experience with municipal pension plan assets. (See insert for Manager Asset Allocation Model and Rates of Return History)
The Trust offers two investment options:
Balanced Portfolio
Approximately 60 percent of assets invested in equities, with 40 percent in fixed investments
Fixed Portfolio
Total assets invested in fixed or guaranteed rate investments.
Affordable
The Municipal Retirement Trust fee structure is based on a sliding scale, with a minimum annual fee of $150 per year.
| First Level |
$0 to $50,000 |
1% |
| Second Level |
$50,001 to $250,000 |
.6% |
| Third Level |
$250,001 to $1,000,000 |
.4% |
| More than |
$1,000,000 |
.2% |
Fees are an allowable expenditure under Act 205 of 1984 and may be paid from pension plan assets.
Contact us to find out more . . .
MRT Client Customer Service Center
Municipal Retirement Trust Customer Service
(717) 236-9526 or (800) 232-7722
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