4.1. ERMUSR 02-11-2014 - Laserfiche WebLink

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The City's contributions to PEDCP for the past three years are as follows: PEDCP 2012 $1,405 2011 1,380 2010 1,470 The Elk River Fire Relief Association (the "Association") is the administrator of a single employer public employee defined benefit retirement system established to provide benefits for members of the Elk River Fire Department. The Association maintains a separate special fund to accumulate assets to fund the retirement benefits earned by the Fire Department's membership. Funding for the 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 Minnesota Statutes 1980). The financial requirements of the special fund are determined in accordance with 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 do not have any contribution requirements. The payments made by the State of Minnesota to the City for the Association for the past five years are as follows: Firefighter's Association 2012 $118,465 2011 118,522 2010 101,255 2009 97,024 2008 113,999 For more information regarding the liability of the City with respect to its employees, please reference "Note 4, OTHER INFORMATION, D. Pension Plans" of the City's Comprehensive Annual Financial Report for fiscal year ended December 31, 2012, an excerpt of which is included as Appendix IV of this Official Statement. (The City's Comprehensive Annual Financial Report for the fiscal year ended December 31, 2013 is not yet available.) Sources: City's Comprehensive Annual Financial Reports. Other Post-Employment Benefits The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions (GASB 45), which addresses how state and local governments must account for and report their obligations related to post-employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or"OPEB"). The City provides other postemployment health insurance benefits for retired employees through two defined benefit plans: the Municipal Retirees Health Plan (MRHP), a single- employer plan; and the Utilities Retirees Health Plan (URHP), a multi-employer plan. Each plan provides benefits for eligible retirees and their dependents through the City's group health insurance plans, which cover both active and retired members. Since the premium is a blended rate determined on the active and retiree population, the retirees are receiving an implicit rate subsidy. Contribution requirements are reviewed at the time changes are made to the plans. - 31 - 112