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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 NOTE 5 -OTHER INFORMATION (Continued) C. Employee retirement systems and pension plans (Continued) 1. Defined benefit pension plans - statewide employees plan (Continued) b. Funding ..policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by State Statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.1% and 5.5 %, respectively, of their annual covered salary. PEPFF members are required to contribute 7.0% of their annual covered salary. The City of Roseville is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.0% for Coordinated Plan PERF members, and 10.5% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2006, 2005, and 2004 were $349,113, $301,253, and $294,717, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2006, 2005 and 2004 were $351,$64, $259,776, and $296,526, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 2. Defined Contribution Plan a. Pan e scriptlon Four council members and the mayor of the City of Roseville are covered by the defined contribution pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Defined Contribution Plan (PEDCP), which is amultiple- employer deferred compensation plan. b. Funding policy The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 3 53 D.03, specifies the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent of salary, which is matched by the elected official's employer. i �