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Management Discussion and Analysis -Continued
<br />May 12, 2009
<br />Funding Status
<br />The amount of the total accrued pension liability is based on a standardized measurement established by the Governmental
<br />Accounting Standards Board (GASB) that, with some exceptions, must be used by the relief associations for financial statement
<br />presentations. This standardized measurement is based on Minnesota statute 69.772. This pension valuation method reflects the
<br />present value of estimated pension benefits that will be paid in future years as a result of service years performed by the members
<br />of the 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 funding 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 />for the last six years.
<br />Year
<br />2003
<br />2004
<br />2005
<br />2006
<br />2007
<br />2008
<br />$ 1,354,326
<br />1,646,533
<br />1,886,585
<br />2,092,351
<br />2,420,742
<br />1,696,356
<br />Prior Six Years Funding Process
<br /> $3,000,000
<br />'
<br /> $2 500 000
<br />
<br /> $2,000,000
<br /> $1
<br />500
<br />000
<br /> ,
<br />,
<br />! $1,000,000
<br />' $500,000
<br />i $-
<br />r
<br /> Funding
<br />Liabilities Percentage
<br />$ 1,378,916 98.2
<br />1,664,129 98.9
<br />1,781,082 105.9
<br />1,823,195 114.8
<br />2,110,264 114.7
<br />2,392,353 70.9
<br />114.7% $2,392,353
<br />114.8%
<br />105.9%
<br />$1,664,129 $2,110,264
<br />$1,378,916 $1,781,082 $1,823,195 0
<br />° 70.9 /o
<br />98.2%
<br />2003 2004 2005 2006
<br />-+-Assets -~ Liabilities
<br />-III-
<br />2007 2008
<br />
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