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CITY OF ELK RIVER <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2019 <br />NOTE 9 DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) <br />G. Pension Liability Sensitivity (Continued) <br />PEPFF PENSION LIABILITY <br />Description <br />City's Proportionate Share of the PEPFF Net <br />Pension Liability <br />H. Pension Plan Fiduciary Net Position <br />One Percent One Percent <br />Decrease in Current Increase in <br />Discount Rate Discount Rate Discount Rate <br />(6.50%) (7.50%) (8.50%) <br />$ 7,388,289 $ 3,380,110 $ 65 <br />Detailed information about each pension plan's fiduciary net position is available in a <br />separately issued PERA financial report that includes financial statements and required <br />supplementary information. That report may be obtained on the Internet at <br />www.mnpera.org. <br />NOTE 10 DEFINED CONTRIBUTION PLAN <br />Three council members of the City of Elk River are covered by the Public Employees <br />Defined Contribution Plan (PEDCP), a multiple -employer deferred compensation plan <br />administered by the Public Employees Retirement Association of Minnesota (PERA). The <br />PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all <br />contributions by or on behalf of employees are tax deferred until time of withdrawal. <br />Plan benefits depend solely on amounts contributed to the plan plus investment earnings, <br />less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan <br />provisions, including the employee and employer contribution rates for those qualified <br />personnel who elect to participate. An eligible elected official who decides to participate <br />contributes 5% of salary which is matched by the elected official's employer. <br />Employees who are paid for their services may elect to make member contributions in an <br />amount not to exceed the employer share. Employer and employee contributions are <br />combined and used to purchase shares in one or more of the seven accounts of the <br />Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% <br />of employer contributions and twenty-five hundredths of 1 % (0.25%) of the assets in each <br />member's account annually. <br />Total contributions made by the City of Elk River during fiscal year 2019 were: <br />Contribution Amount <br />Employee Employer <br />$ 1,380 $ 1,380 <br />Percentage of Covered Payroll <br />Employee Employer <br />5.0% 5.0% <br />Required <br />Rates <br />5.0% <br />(67) <br />