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CITY OF ARDEN HILLS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31 . Note 3: Authorizing law Type of district lra~ 'f= Increment Increment District No.2 District No.3 M.S. 469 M.S. 469 Redevelopment Housing 1989 1993 25 years 15 years $ 25,135 $ 1,758 461,116 48,599 $ 435,981 $ 46,841 $ 3,100,000 $ 705,000 $ 2.395,000 $ Year established Duration of district Tax capacity Original Current Captured - retained Total General Obligation Tax Increment Bonds and Notes issued Amounts redeemed Outstanding at December 3 l, 2005 . Note 4: DEFINED BENEFIT PENSION PLAN - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan membcrs are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defmed retirement benefit$ are based on a memberls highest average salary fOT any five successive yeaTS of allowable service) age, and years of credit at termination of service. . Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent ofaverage salary for each of the frrst 10 years of service and 2. 7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the fITS! 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For all PERF members whose annuity is calculated using Method 1, a full annuity is available when age pIns years of service equal 90. A reduced retirement annuiry is also available to eligible members seeking early retirement. -36-