Laserfiche WebLink
<br />4 <br /> <br />LAKE JOHANNA VOLUNTEER FIREMEN'S BENEFIT ASSOCIATION, INC. <br />December 3 I, 2000 Actuarial Valuation <br /> <br />e <br /> <br />Analvsis of Chan!!e in Unfunded Accrued Liabilitv <br /> <br />The unfunded accrued liability decreased by $161,461 from December 31, 1999 to December 31, 2000. <br />The analysis of this change is shown below: <br /> <br />1. Unfunded Liability 12/31/99 <br /> <br />2. Amount by which contributions were greater than <br />normal cost and interest requirements <br /> <br />3. Increase in accrued liability due to by-law changes <br /> <br />4. Actuarial gain for the period <br /> <br />5. Unfunded accrued liability 12/31//00 <br />(1) - (2) + (3) - (4) <br />~L.'1~'7 4~.(YZ.(" <br /> <br />The net actuarial gain of $477,747 was due to in part to an estimated asset value as of the last valuation <br />which was significantly less than the actual December 31, 1999 asset value. <br /> <br />$(80,998) <br /> <br />113,435 <br /> <br />429,721 <br />477,747 <br /> <br />$(242,459) <br /> <br />e <br /> <br />Contribution Requirements <br /> <br />Section 69.773, Subdivision 4 of the Minnesota Statutes states that the contribution requirement is equal <br />to the normal cost and expenses less 10% of the surplus. <br /> <br />The following is a summary of the valuation results utilized in determining the contribution requirements. <br /> <br />Normal Cost <br />Expenses <br />10% of Surplus <br />Contribution Requirement* <br /> <br />$119,886 <br />26,000 <br />(24,246) <br />$124,644 <br /> <br />* Assuming mid-year payment <br /> <br />The minimum obligation of the municipality is generally equal to the contribution requirement, $124,644 <br />less fire state aid. Fire state aid is expected to be $160,000 in 2001. In addition, a contract with Alliant <br />Techsystems, Inc. will provide an additional annual contribution to the special fund of approximately A <br />$13,390 in 2001. . <br /> <br />VAN IWAARDEN <br />