Section 895.303 - Minimum funding standard; defined benefit plans wholly insured or defined contribution plans(a)Generally.--This section applies to any municipality which has established and maintains a pension plan which is one of the following: (1) A defined benefit plan which is fully insured by an authorized insurance carrier.(2) A defined contribution plan which is self-insured in whole or in part.(3) A defined contribution plan which is fully insured by an authorized insurance carrier.(b)Financial requirements of the pension plan.--Annually, the chief administrative officer of the pension plan shall determine the financial requirements of the pension plan for the following plan year. The financial requirements of the pension plan shall be determined pursuant to the terms of the contract or policy with the insurance carrier or the plan document governing the pension plan, whichever is applicable.(c)Minimum obligation of the municipality.--Annually, the chief administrative officer of the pension plan shall determine the minimum obligation of the municipality with respect to the pension plan for the following plan year. The minimum obligation of the municipality with respect to the pension plan shall be the employer contribution portion of financial requirements determined pursuant to the terms of the contract or policy with the insurance carrier or the plan document governing the pension plan, whichever is applicable.(d)Payment of minimum municipal obligation.--Annually, the municipality shall provide for the full amount of the minimum obligation of the municipality in the budget of the municipality. The minimum obligation of the municipality shall be payable to the pension plan from the revenue of the municipality. Payment of the minimum obligation of the municipality shall be made by the municipality.(e)Interest penalty on omitted municipal contribution.--Any amount of the minimum obligation of the municipality which remains unpaid as of December 31 of the year in which the minimum obligation is due shall be added to the minimum obligation of the municipality for the following year, with interest from January 1 of the year in which the minimum obligation was first due until the date the payment is paid at a rate equal to the interest assumption used for the actuarial valuation report or the discount rate applicable to treasury bills issued by the Treasury Department of the United States with a six-month maturity as of the last business day in December of the plan year in which the obligation was due, whichever is greater, expressed as a monthly rate and compounded monthly. 1984, Dec. 18, P.L. 1005, No. 205, § 303. Amended 1990, Dec. 18, P.L. 753, No. 189, § 1, imd. effective.