6.2. SR 06-17-2019 - Laserfiche WebLink

Home Browse Search

CITY OF ELK RIVER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 NOTE 9: DEFINED BENEFIT PENSION PLANS — STATE-WIDE - CONTINUED G. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: Primary Government: GERF - City PEPFF Component Unit: GERF - HRA H. Pension Plan Fiduciary Net Position City Proportionate Share of NPL Current Discount 1% Lower (6.5%) Rate (7.5%) 1% Higher (8.5%) $ 12,934,309 $ 7,958,885 $ 3,851,929 6,958, 891 3,245,656 174,966 84,137 51,835 25,056 Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088; or by calling (651) 296-7460 or (800) 652-9026. NOTE 10: DEFINED CONTRIBUTION PLAN Three council members of the City of Elk River are covered by the Public Employees Defined Contribution Plan (PEDCP), 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 time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of one percent (.0025) of the assets in each member's account annually. Total contributions made by the City of Elk River during fiscal year 2018 were: Contribution Amount Employee Employer $1,405 $1,405 Percentage of Covered Payroll Employee Employer 5.0% 5.0% 63 Required Rate 5.0%