CITY OF ROSEVILLE
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2012
<br />NOTE 5 -OTHER INFORMATION (Continued)
<br />E. Annual pension cost and net pension obligation
<br />The annual pension cost and net pension obligation for the current year were as follows:
<br />Annual required contribution $ 298,233
<br />Interest on net pension obligation (8,139)
<br />Adjustment to annual required contribution 22,901
<br />Annual pension cost 312,995
<br />Contributions made (353,384)
<br />Increase (decrease) in net pension obligation (40,389)
<br />Negative net pension obligation beginning of year (162,774)
<br />Negative net pension obligation end of year $ (203,163)
<br />The annual required contribution was determined as part of the January 1, 2012 actuarial valuation. The
<br />actuarial assumptions included (a) 5% investment rate of return (net of administrative expenses); (b) a
<br />mortality table of the 1983 Group Annuity Mortality Table for Males and Females; (c) termination of
<br />6 percent rate from age 20 -30, grading to no terminations after age 50; (d) disability rates based upon 75
<br />percent of the Railroad Retirement Board Disability Rates; (e) entry age actuarial cost method based
<br />upon age on employment date; (f) retirement age based upon the later of age 55 or 20 years of service;
<br />(g) 85 percent of members are assumed to be married, with wives three years younger than husbands; (h)
<br />normal form of payment based upon joint and 100 percent to survivor annuity; (i) asset basis based upon
<br />market value; and (j) level dollar amortization which is sufficient to amortize the unfunded actuarial
<br />accrued liability by a closed period ending December 31, 2011 and a closed period of 11 years for Plan
<br />amendments.
<br />The Fire Relief Association is required to have an actuarial valuation completed once every two years.
<br />The latest actuarial value of plan liability on December 31, 2011 was $8,750,652. The value of the plan
<br />assets, valued at market, totaled $7,402,826 on December 31, 2011. A six -year summary of Assets,
<br />Liabilities and funding ratios are listed below:
<br />Year
<br />2006
<br />2007
<br />2008
<br />2009
<br />2010
<br />2011
<br />Actuarial
<br />Value of
<br />Assets
<br />$ 8,007,93 5
<br />8,328,320
<br />5,749,103
<br />6,784,350
<br />7,525,091
<br />7,402, 826
<br />December 31, 2011
<br />Actuarial Unfunded
<br />Accrued Liability (Overfunded)
<br />(Entry Age) Accrued Liability
<br />-
<br />$ 9,197,703 $ 1,189,768
<br />8,336,812 8,492
<br />8,568,192
<br />2,81909
<br />8,651,694
<br />1,867,344
<br />8,798,831
<br />1,274,740
<br />8,750,652
<br />1,347,826
<br />71
<br />Funded
<br />Ratio
<br />87.06%
<br />99.90%
<br />67.10%
<br />78.42%
<br />85.51%
<br />84.60%
<br />
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