5.5. SR 06-02-2008 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS ' DECEMBER 3t, 2007 Note 4: OTHER INFORMATION -CONTINUED There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon Che death of Che retiree-no survivor annuity is payable. There are also various types ' ofjoint and survivor annuity options available which will be payable overjoint lives. Members may also leave Cheir contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who t leave public service, but before retirement benefits begin. ' The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them ' yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary ' information for PEAF and PEPFF. 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 1-800- 652-9026. ' b. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are ' established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10"/° and 5.7>%, respectively, of their annual covered salary in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.00%. PEPFF members were required to contribute ' 7.8% of their annual covered salary in 2007. That rate will increase to 8.6% in 2008. The City of Elk River is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.25% for Coordinated Plan PERF members, and 11.7% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 6.5% and 12.9% respectively effective January 1, 2008. The City's contributions to the Public Employees Retirement Fund for the years ending December 3l, 2007, 2006, and 2005 were $466,348, $414,895, $368,213, respectively. The City's contributions to the Public Employees Police & Fire Fund for the yeazs ending December 31, 2007, 2006, and 2005 were $259,059, ' $214,037, $180,763, respectively. The City's contributions were equal to the contractually required contributions For each year as set by state statute. ' 2. Volunteer Fire Department Relief Association a. Plan Description ' The Elk River Fire Relief Association is the administrator of a single employer public employee deftned benefit retirement system (PEAS) established to provide benefits for members of the Elk River Fire Department. ' The Fire Relief Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Fire Department's membership. Funding for the relief association is derived primarily from an insurance premium tax in accordance with the Volunteer Firefighter's Relief Association Financing Guidelines Act of 7971 (Chapter 261 as amended by Chapter SD9 of Minnesota Statutes 1980). ' The Fire Relief Association issues a publicly available £mancial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Elk River Fire Department t Relief Association, 13073 Orono Parkway, Elk River, MN 55330. ' S9