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<br />. <br /> <br />. <br /> <br />. <br /> <br />5 <br /> <br />LAKE JOHANNA VOLUNTEER FIREMEN'S BENEFIT ASSOCIATION, INC. <br />December 31,2000 Actuarial Valuation <br /> <br />Imoact of Future Benefit Increases <br /> <br />It was requested that we determine the funding implications if both the service and lump sum pension <br />were increased. The following parameters were applied: <br /> <br />1) The increases would apply to all active, early retired deferred, fully retired deferred and retired <br />members; <br /> <br />2) The funding ratio after the change would be about 90%; <br /> <br />3) The expected annual contribution after the change would be approximately $220,000. The Alliant <br />contribution was eliminated for this parameter. <br /> <br />Based on the above, the service pension could be increased from $28.15 to $33.10 and the lump sum <br />pension from $4,615 to $5,432. The actuarial results are shown below and compared with the current <br />benefit level. <br /> <br />Accrued Liability <br /> <br />Assets <br /> <br />Funded Ratio <br /> <br />Funding: <br /> <br />Normal Cost <br /> <br />Estimated <br />Expenses <br /> <br />Amortization <br />Payment <br /> <br />Interest <br /> <br />Totals - mid-year <br /> <br />Current <br />$4,080,718 <br />4,323,177 <br />105.9% <br /> <br />After Increase <br />$4,803,005 <br /> <br />4,323,177 <br /> <br />90% <br /> <br />119,886 <br />26,000 <br /> <br />141,105 <br />26,000 <br /> <br />(24,246) <br /> <br />36,336 <br /> <br />3,004 <br />124,644 <br /> <br />5,024 <br />208,465 <br /> <br />As mentioned above, these increases are within the expected contribution range without the Alliant <br />contribution. The plan reaches the 90% funded ratio before the expected contribution reaches $220,000. <br /> <br />VAN IWAARDEN <br />