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ELK RIVER FIRE RELIEF ASSOCIATION <br /> ELK RIVER,MINNESOTA <br /> NOTES TO THE FINANCIAL STATEMENTS <br /> DECEMBER 31,2013 AND 2012 <br /> Note 1: PLAN DESCRIPTION-CONTINUED <br /> C. Pension benefits <br /> The Association operates under a defined benefit plan.The pension liability is calculated by the number of active service <br /> years multiplied by a set benefit level.The Association's current level is at$5,091 per active year.According to the <br /> bylaws of the Association and pursuant to Minnesota statute 424A.02,subdivisions 2 and 4,members who retire with <br /> less than 20 years of service and have reached the age of 50 years and have completed at least five years of active <br /> membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member's <br /> service pension for the completed years of service times the applicable non-forfeitable percentage of pension as follows: <br /> Completed years Non-forfeitable percentage <br /> of service of pension amount <br /> 5 40% <br /> 6 44 <br /> 7 48 <br /> 8 52 <br /> 9 56 <br /> 10 60 <br /> 11 64 <br /> 12 68 <br /> 13 72 <br /> 14 76 <br /> 15 80 <br /> 16 84 <br /> 17 88 <br /> 18 92 <br /> 19 96 <br /> 20 and thereafter 100 <br /> If a member of the Association shall become totally and permanently disabled,with a service related disability(injured <br /> in the line of duty)to the extent that a physician or surgeon acceptable to the Board shall certify that such disability <br /> will permanently prevent said member from performing said member's duties in the Department,the Association shall <br /> pay to such member the sum of the current pension amount for each year and fractions of a year that the member has <br /> served as an active member of the Department,without regard to minimum or partial vesting requirements.If a <br /> member who has received such a disability pension should subsequently recover and return to active duty in the <br /> Department,any amount paid to said member as a disability pension shall be deducted from said member's service <br /> pension. <br /> Upon the death of any member of the Association who is in good standing at the time of said member's death,the <br /> Association shall pay to the surviving spouse,if any,and if there is no surviving spouse,to child or children,if any, <br /> and if no child or children survive,to the estate of such deceased member,the credited sum of said member's pension. <br /> -22- <br />