5.1. SR 05-14-2001 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 311, 2000 Note 12: VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION A. Plan- Description The Elk River Fire Relief Association is the administrator of a single employer public employee defined benefit retirement system (PERS) 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 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980.) The Fire Relief Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Elk River Fire Department Relief Association, 415 Jackson Ave,, Elk River, MN 55330. W.: The financial requirements of the Special Fund are determined in accordance with Section 69.772 of the Minnesota Statutes, which requires the payment of pension benefits in a lump sum or optionally in annual installments. The Association is comprised of volunteers and therefore members have no contribution requirements. The following summarizes the City's annual pension cost and other related information for the current year: Annual pension cost $64,092 Contributions made: City (voluntary) $22,000 State aid $64,092 Actuarial valuation date 12/31/00 Actuarial cost method Entry age normal Amortization method Level dollar closed Remaining amortization period: Normal cost 20 years Prior service cost 5 years Asset valuation method Market Actuarial assumptions: Investment rate of return 9% Projected salary increases N/A Inflation rate N/A Cost of living adjustment None 30