6.1. SR 06-03-2013 - Laserfiche WebLink

Home Browse Search

i CITY OF ELK RIVER,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2012 Note 4: OTHER INFORMATION—CONTINUED of salary. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan,PERA receives 2 percent of employer contributions and twenty-five hundredths of one percent of the assets in each member's account annually. I Total contributions made by the City of Elk River during fiscal year 2012 were: Contribution Amount Percentage of Covered Payroll Required Employee Employer Employee Employer Rates $1,405 $1,405 5.0% 5.0% 5.0% 2. Volunteer Fire Department Relief Association a. Plan Description The Elk River Fire Relief Association is the administrator of a single employer public employee defined benefit retirement system(PERS)established to provide benefits for members of the Elk River Fire Department. i The Fire Relief Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Fire Department's membership. Funding for the relief association is derived primarily from an insurance premium tax in accordance with the Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971 (Chapter 261 as amended by Chapter 509 of Minnnesota Statutes 1980). The Fire Relief Association issues a publicly available financial report that includes financial statements and required supplementary inforrnation. The report may be obtained by writing to the Elk River Fire Department Relief Association, 13073 Orono Parkway,Elk River,MN 55330. b. Funding Policy i The financial requirements of the Special fund are determined in accordance with Section 69.772 of the Minnesota Statutes,which requires the payment of pension benefits in a lump sum or optionally in annual installments. The Association is comprised of volunteers and therefore members have no contribution requirements. During the year,the City recognized as revenue and as expenditure on-behalf payments of $118,465 made by the State of Minnesota for the Fire Relief Association. i i I i I i i 57