Laserfiche WebLink
City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 11 — PENSION PLANS (CONTINUED) <br />Defined Benefit Pension Plan — Volunteer Firefighter's Relief Association <br />A. Plan Description <br />The Elk River Firefighter's Relief Association is the administrator of a single employer defined benefit <br />pension plan established to provide benefits for members of the Elk River Fire Department per <br />Minnesota State Statutes. <br />B. Benefits Provided <br />Volunteer firefighters of the City are members of the Elk River Firefighter's Relief Association. Full <br />retirement benefits are payable to members who have reached age 50 and have completed 20 years of <br />service for lump sum service pensions. Partial benefits are payable to members who have reached 50 and <br />have completed 5 years of service. Disability benefits and widow and children's survivor benefits are also <br />payable to members or their beneficiaries based upon requirements set forth in the bylaws. These benefit <br />provisions and all other requirements are consistent with enabling state statutes. <br />C. Employees Covered by Benefit Terms <br />At December 31, 2020, the following employees were covered by the benefit terms: <br />Inactive employees entitled to but not yet receiving benefit payments 8 <br />Active employees 39 <br />Total <br />D. Contributions. <br />47 <br />Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The <br />minimum support rates from the municipality and from State aids are determined as the amount required <br />to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The <br />City's obligation is the financial requirement for the year less state aids. Any additional payments by the <br />City shall be used to amortize the unfunded liability of the relief association. The Association is <br />comprised of volunteers: therefore, there are no payroll expenditures (i.e. there are no covered payroll <br />percentage calculations). During the year, the City recognized as revenue and as an expenditure on <br />behalf payment of $217,909 made by the State of Minnesota for the Relief Association. <br />E. Net Pension Liability <br />The City's net pension liability was measured as of December 31, 2020, and the total pension liability <br />used to calculate the net pension liability was determined by an actuarial valuation as of that date. <br />91 <br />