|
CITY OF ROSEVILLE
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2010
<br />NOTE 5 —OTHER INFORMATION (Continued)
<br />D. Annual pension cost and net pension obligation (Continued)
<br />The annual required contribution was determined as part of the January 1, 2010 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, 2009 was $8,651,694. The value of the plan
<br />assets, valued at market, totaled $6,784,350 on December 31, 2009. A six -year summary of Assets,
<br />Liabilities and funding ratios are listed below:
<br />Schedule of Funding Progress
<br />December 31, 2009
<br />Actuarial Unfunded
<br />Accrued Liability (Overfunded)
<br />(EntryAge) Accrued Liability
<br />$ 7,873,859 $ 1,061,265
<br />8,099,640
<br />Actuarial
<br />8,197,703
<br />Value of
<br />Year
<br />Assets
<br />2004
<br />$ 6,812,594
<br />2005
<br />7,165,225
<br />2006
<br />807,935
<br />2007
<br />8,328,320
<br />Schedule of Funding Progress
<br />December 31, 2009
<br />Actuarial Unfunded
<br />Accrued Liability (Overfunded)
<br />(EntryAge) Accrued Liability
<br />$ 7,873,859 $ 1,061,265
<br />8,099,640
<br />934415
<br />8,197,703
<br />189,768
<br />8,336,812
<br />8492
<br />Funded
<br />Ratio
<br />86.5%
<br />88.5%
<br />97.7%
<br />99.9%
<br />2008 5,749,103 8,568,192 2,819,089 67.1%
<br />2009 6,784,350 8,651,694 1,867,344 78.4%
<br />Covered payroll is not an actuarial factor in determining benefits or funding obligations under applicable
<br />Minnesota statutes.
<br />72
<br />
|