2.0. ERMUSR 08-29-2018 - Laserfiche WebLink

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Employee Pensions All full-time employees and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF),which are cost-sharing multiple-employer retirement plans. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Se urity and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by PEPFF. PERA provides retirement and disability benefits to its members, and to survivors upon death of eligible members. Benefits are established by State statute; vest after three years of service; and are based on a member's highest average salary for any five successive years of allowable service, age, and a fo ula multiplier based on years of credit at termination of service. Th. City's contributions to GERF and PEPFF are equal to the contractually required contributions for ea.h year as set by State Statute, and are as follows for the past five years: GERF PEPFF 2017 $706,492 $508,774 2016 690,881 495,478 2015 668,633 478,192 2014 615,331 418,280 2013 584,075 383,545 T ee Council members of the City are covered by the Public Employees Defined Contribution Plan (P DCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax- qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until the time of withdrawal. Plan benefits depend solely on the amounts co tributed to the plan plus investment earnings less administrative expenses. An eligible elected official wh chooses to participate in the plan contributes 5% of their salary, which is matched by the elected of cial's employer. For salaried employees, employer contributions are determined by the employer and m st be a fixed percentage of salary. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. PERA receives 2% of employer contributions and 0.025% of the assets in each member's account annually for administering the plan. The City's contributions to PEDCP for the past three years are as follows: PEDCP 2017 $1,405 2016 1,405 2015 1,380 2014 940 2013 940 Th. Elk River Fire Relief Association(the "Association") is the administrator of a single employer public emi•loyee defined benefit retirement system established to provide benefits for members of the Elk River Fir Department (the "Fire Department"). The Association maintains a separate special fund to ac.umulate 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). Funds are also derived from investment income. 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 As ociation is comprised of volunteers and, therefore, members do not have any contribution re uirements, but the City has voluntarily contributed $30,000 for the past five years in addition to co tributions made by the State of Minnesota. - 31 - 40