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CITY OF ELK RIVER <br /> NOTES TO BASIC FINANCIAL STATEMENTS <br /> YEAR ENDING DECEMBER 31, 2016 <br /> NOTE 9 DEFINED BENEFIT PENSION PLANS —STATE-WIDE <br /> A. Plan Description <br /> The City of Elk River participates in the following cost-sharing multiple-employer defined <br /> benefit pension plans administered by the Public Employees Retirement Association of <br /> Minnesota (PERA). PERA's defined-benefit pension plans are established and <br /> administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's <br /> defined-benefit pension plans are tax qualified plans under Section 401 (a) of the Internal <br /> Revenue Code. <br /> 1. General Employees Retirement Fund (GERF) <br /> All full-time and certain part-time employees of the City are covered by the General <br /> Employees Retirement Fund (GERF). GERF members belong to either the <br /> Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social <br /> Security and Basic Plan members are not. The Basic Plan was closed to new <br /> members in 1967. All new members must participate in the Coordinated Plan. <br /> 2. Public Employees Police and Fire Fund (PEPFF) <br /> The PEPFF, originally established for police officers and firefighters not covered by a <br /> local relief association, now covers all police officers and firefighters hired since 1980. <br /> Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging <br /> to a local relief association that elected to merge with and transfer assets and <br /> administration to PERA. <br /> B. Benefits Provided <br /> PERA provides retirement, disability, and death benefits. Benefit provisions are <br /> established by state statute and can only be modified by the state legislature. <br /> Benefit increases are provided to benefit recipients each January. Increases are related <br /> to the funding ratio of the plan. Members in plans that are at least 90% funded for two <br /> consecutive years are given 2.5% increases. Members in plans that have not exceeded <br /> 90% funded, or have fallen below 80%, are given 1% increases. <br /> The benefit provisions stated in the following paragraphs of this section are current <br /> provisions and apply to active plan participants. Vested, terminated employees who are <br /> entitled to benefits but are not receiving them yet are bound by the provisions in effect at <br /> the time they last terminated their public service. <br /> (58) <br />