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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31.2004 <br />NOTE 5 -OTHER INFORMATION (Continued) <br />C. Employee retirement systems and pension plans (Continued) <br />1. Defined benefit pension plans - statewide employees plan (Continued) <br />b. Fundimr. policy <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These <br />statutes are established and amended by the state legislature. The City makes annual <br />contributions to the pension plans equal to the amount required by State Statutes. PEW Basic <br />Plan members and Coordinated Plan members are required to contribute 9.1% and 5.1%, <br />respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of <br />their annual covered salary. The City of Roseville is required to contribute the following <br />percentages of annual covered payroll: 11.78% for Basic Plan PEW members, 5.53% for <br />Coordinated Plan PEW members, and 9.30% for PEPFF members. The City's contributions to <br />the Public Employees Retirement Fund for the years ending December 31, 2 0 04, 2 0 0 3 , and 2002 <br />were $294,717, $276,606, and $256,407, respectively. The City's contributions to the Public <br />Employees Police & Fire Fund for the years ending December 31, 2004, 2003 and 2002 were <br />$2961826, $275,818, and $268,469, respectively. The City's contributions were equal to the <br />contractually required contributions for each year as set by state statute. <br />2. Defined Contribution Plan <br />a. Plan description <br />Four council members and the mayor of the City of Roseville are covered by the defined <br />contribution pension plan administered by the Public Employees Retirement Association of <br />Minnesota (PERA). PERA administers the Public Employees Defined Contribution Plan <br />(PEDCP), which is a multiple- employer deferred compensation plan. <br />b. Funding policy <br />The PEDCP is a tax qualified plan under Section 401(x) of the Internal Revenue Code and all <br />contributions by or on behalf of employees are tax deferred until time of withdrawal. <br />Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less <br />administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and <br />employer contribution rates for those qualified personnel who elect to participate. An eligible <br />elected official who decides to participate contributes 5 percent of salary, which is matched by the <br />elected official's employer. <br />rc o <br />