6.4. SR 06-21-2004 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2003 Note 4. OTHER INFORMATION - CONTINUED b. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Elk River is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2003, 2002 and 2001 were $265,698, $245,550 and $208,133, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2003, 2002 and 2001 were $149,658, $146,567 and $140,634, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 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. 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 fzom 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 Fire Relief Association issues a publicly available fmancial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Elk River Fire Department Relief Association, 415 Jackson Ave., Elk River, MN 55330. b. Funding Policy The f'mancial 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. The following summarizes the City's annual pension cost and other related information for the current year: Annual pension cost $112,146 Contributions made: City (voluntary) $24,100 State aid $112,146 Actuarial valuation date 12/31/03 Actuarial cost method Entry age normal Amortization method Level dollar closed Remaining amortization period: Normal cost 20 years 53