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<br />Management Discussion and Analysis -Continued
<br />May >, 2008
<br />Funding Status
<br />The amount ofthe total accrued pension liability is based nn a standardized measurement established by the Governmental
<br />Accounting Standards Board (GASB) that, with some exceptions, must be used by the relief associations Cor financial statement
<br />presentations. This standardized measurement is based on Minnesota statute 69.772. This pension valuation method reflecu the
<br />present value of estimated pension bcnc[its that wil( be paid in future years as a result of service years performed by the members
<br />ofthe Association. A standardized measure of the accrued pension liability was adopted by GASB to enable the readers of relief
<br />association financial statements to (a) assess the relief association's fundins status on agoing-concern basis, (b) assess progress
<br />being made in accumulating sufficient assets to pay benefits when due, and (c) make comparisons among relief associations.
<br />Because the standardized measure is used only for disclosure purposes by the Association, the measurement is independent of an
<br />actuarial computation made to determine contributions to the Association. The following represents the percentage funded trend
<br />ii~r the last six years.
<br />Year
<br />2002
<br />2003
<br />2004
<br />2005
<br />2006
<br />2007
<br /> Funding
<br />Assets Liabilities Percentage
<br />$ 1,037,180 $ 1,267,510 81.8
<br />1,354,326 1,378,916 93.2
<br />1,646,533 1,664,129 98.9
<br />],886,585 1,781,082 L05.9
<br />2,092,357 1,823,195 114.8
<br />2,42Q742 2,110,264 114.7
<br />Prior Six Y"ears Funding Process
<br />$3,000,000
<br />~zsaa,ooo
<br />Rz,aaa,ooo
<br />$1,500,000
<br />$1,000,000
<br />$500,000
<br />$-
<br />114.7%
<br />I la.s°i°
<br />l o5.9°i°
<br />$1,664,129 S2,11Q,264
<br />$1,378,916
<br />51,781,082 $1,825,195
<br />S1;267,510 98.9%
<br />98.2%
<br />81.8%
<br />2002 2003 2004 2005
<br />-t-Assets s'®""I,iabilities
<br />-III-
<br />2006 2007
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