2005-09-14 CC Packet - Laserfiche WebLink

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NOTE 5. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS DEFINED BENEFIT PENSION PLANS - STATEWIDE Plan Description: All full-time employees of the Commission are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employee Retirement Fund (PERF), which is a cost-sharing multiple-employer retirement plan. This plan is established and administered in accordance with Minnesota Statute, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All Commission members 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 the State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of servIce. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participates. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary infonnation for PERF. That report may be obtained by writing to PERA, 60 Empire Drive, #200, St. Paul, MN 55103- 2088 or by calling 651-296-7460 of 1-800-652-9026. Funding Policy: Minnesota Statute Chapter 353 sets rates for employer and employee contributions. These statutes are established and amended by the state legislature. The Commission makes annual conhibutions to the pension plans equal to the amount required by the state statutes. PERF Basic Plan members and Coordinated plan members are required to contribute 9.1% and 5.1%, respectively of their annual covered salary. The Commission is required to contribute the following percentage of annual covered payroll: 5.53% for Coordinated Plan PERF members. The Commission's ContIibutions to the Public Employees Retirement . Fund for the year ended December 31, 2004 was $21,619. The Commission's contributions were equal to the contractually required contributions for each year as set by state statutes. P.lSl