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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 NOTE 5 -OTHER INFORMATION (Continued) A. Risk management (Continued) B. Contingent liabilities The City had the usual and customary types of miscellaneous claims pending at year end mostly of a minor nature, and usually all covered by insurance carried for that purpose or the City has reserved funds for settlement. The City also carries personal injury insurance against suits for false arrest, libel, slander, violation of privacy, wrongful entry, etc. which can arise from enforcement of the city code and general laws. Although the outcome of these lawsuits in not presently determinable, in the opinion of the government's counsel the resolution of these mater will not have a material adverse effect on the financial condition of the government. C. Employee retirement systems and pension plans 1. Defined benefit pension plans - statewide employees plan a. Plan Description All full -time and certain part-time employees of the City of Roseville are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PEKE) and the Public Employees Police and Fire Fund (PEPFF), which are cost - sharing, multiple- employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plane Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by 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. 67 Risk Management Fund Beginning of Current Year Ending of Fiscal Year Claims and Changes Claims Fiscal Year Liability in Estimates Payments Liability 2005 67,830 41103 2465983 2323450 2006 232,450 X17,583) 80,231 134,636 B. Contingent liabilities The City had the usual and customary types of miscellaneous claims pending at year end mostly of a minor nature, and usually all covered by insurance carried for that purpose or the City has reserved funds for settlement. The City also carries personal injury insurance against suits for false arrest, libel, slander, violation of privacy, wrongful entry, etc. which can arise from enforcement of the city code and general laws. Although the outcome of these lawsuits in not presently determinable, in the opinion of the government's counsel the resolution of these mater will not have a material adverse effect on the financial condition of the government. C. Employee retirement systems and pension plans 1. Defined benefit pension plans - statewide employees plan a. Plan Description All full -time and certain part-time employees of the City of Roseville are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PEKE) and the Public Employees Police and Fire Fund (PEPFF), which are cost - sharing, multiple- employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plane Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by 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. 67