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<br /> 82 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 12 – PENSION PLANS (CONTINUED) <br /> <br />Public Employees' Retirement Association (Continued) <br /> <br />B. Benefits Provided (Continued) <br /> <br />Police and Fire Plan Benefits (Continued) <br /> <br />Benefit increases are provided to benefit recipients each January. The postretirement increase is <br />fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of <br />the June 30 before the effective date of the increase will receive the full increase. Recipients <br />receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 <br />before the effective date of the increase will receive a reduced prorated increase. <br /> <br />C. Contributions <br />Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee <br />contributions. Contribution rates can only be modified by the state Legislature . <br /> <br />General Employees Fund Contributions <br /> <br />General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year <br />2024 and the City and HRA were required to contribute 7.5% for General Plan members. The City and <br />HRA contributions to the General Employees Fund for the year ended December 31 , 2024, were <br />$995,347 and $6,243, respectively. The contributions were equal to the required contributions as set <br />by state statute. <br /> <br />Police and Fire Fund Contributions <br /> <br />Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in <br />fiscal year 2024, and the City was required to contribute 17.7% for Police and Fire Plan members . <br />The City's contributions to the Police and Fire Fund for the year ended December 31 , 2024, were <br />$831,248. The City's contributions were equal to the required contributions as set by state statute. <br /> <br />D. Pension Costs <br /> <br />General Employees Fund Pension Costs <br /> <br />At December 31 , 2024, the City and HRA reported liabilities of $5,817,021 and $36,554, respectively, <br />for their proportionate shares of the General Employees Fund's net pension liability. The City and <br />HRA net pension liabilit ies reflected a reduction due to the State of Minnesota's contribution of $16 <br />million. The State of Minnesota is considered a non -employer contributing entity and the State 's <br />contribution meets the definition of a special funding situation. The State of Minnesota's <br />proportionate share of the net pension liability associated with the City and HRA totaled $150,416 <br />and $945, respectively. <br /> <br />Page 272 of 637