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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2004 NOTE 5 -OTHER INFORMATION (Continued) C. Employee retirement systems and pension plans (Continued) 3. Single employer defined benefit pension plan — volunteer fire relief association (Continued) b. Funding policy (Continued) The Roseville Firefighters' Relief Association is comprised of volunteers, therefore, there are no payroll expenditures, nor covered payroll expenditure calculations. D. Annual pension cost For 2004, the City's' annual pension cost of $448,670 is equal to the City's required and actual contributions. The required contribution was determined as part of the January 1, 2004 actuarial valuation. The actuarial assumptions included (a) 5% investment rate of return (net of administrative expenses); (b) a mortality table of the 1983 Group Annuity Mortality Table for Males and Females; (c) termination of 3 percent rate from age 20 -30, grading to no terminations after age 45; (d) disability rates based upon 75 percent of the Railroad Retirement Board Disability Rates; (e) entry age based upon age on employment date; J% retirement age based upon the later of age 55 or 20 years of service; (g) 85 percent of members are assumed to be married, with wives three years younger than husbands; (h) normal form of payment based upon joint and 100 percent to survivor annuity; (i) asset basis based upon market value; and ) level dollar amortization which is sufficient to amortize the unfunded actuarial accrued liability by a closed period ending December 31, 2010 and a closed period of 20 years for Plan amendments. Schedule of Contributions Six Year Period Minnesota State Aid City of Roseville Total Percent Year Contributions Contributions Contributions Contributed M I' C � �� : �I100 1 12_6,�6 2 32.621 i t 2 (10 ] 2002 152-6.M 1 ! , 5 3 ?i ; 11� 53 100.0 1110 t 1 6..2� ?1J 8,6:'0 484 891 104.90" � 10, 2 11 I, 5Irl 44 16,70 1.33.4%`u The Roseville Firefighters' Relief Association is comprised of volunteers, therefore, there are no payroll expenditures, nor covered payroll expenditure calculations. D. Annual pension cost For 2004, the City's' annual pension cost of $448,670 is equal to the City's required and actual contributions. The required contribution was determined as part of the January 1, 2004 actuarial valuation. The actuarial assumptions included (a) 5% investment rate of return (net of administrative expenses); (b) a mortality table of the 1983 Group Annuity Mortality Table for Males and Females; (c) termination of 3 percent rate from age 20 -30, grading to no terminations after age 45; (d) disability rates based upon 75 percent of the Railroad Retirement Board Disability Rates; (e) entry age based upon age on employment date; J% retirement age based upon the later of age 55 or 20 years of service; (g) 85 percent of members are assumed to be married, with wives three years younger than husbands; (h) normal form of payment based upon joint and 100 percent to survivor annuity; (i) asset basis based upon market value; and ) level dollar amortization which is sufficient to amortize the unfunded actuarial accrued liability by a closed period ending December 31, 2010 and a closed period of 20 years for Plan amendments.