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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 NOTE 5 —OTHER INFORMATION (Continued) D. Annual pension cost and net pension obligation (Continued) The annual required contribution was determined as part of the January 1, 2006 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 6 percent rate from age 20 -30, grading to no terminations after age 50; (d) disability rates based upon 75 percent of the Railroad Retirement Board Disability Rates; (e) entry age based upon age on employment date; (f) 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 (j) level dollar amortization which is sufficient to amortize the unfunded actuarial accrued liability by a closed period ending December 31, 2017 and a closed period of 20 years for Plan amendments. The latest actuarial value of plan liability on December 31, 2006 was $8,854,284. The value of the plan assets, valued at market, totaled $8,007,935 on December 31, 2006. A six -year summary of Assets, Liabilities and funding ratios are listed below: Schedule of Funding Progress December 31, 2046 Actuarial Actuarial Unfunded Value of Accrued Liability Year Assets (Entry Age) 2001 5,743,650 7,372,974 2002 5,1271888 7,4897194 2003 6719509 7,760,496 2004 65812,594 7,873,859 2005 77165,225 81099,640 2006 807,935 8,854,284 (Overfunded) Funded Accrued Liability patio 1,62973 24 77.9% 273617306 68.5% 1,565,407 79.8% 1,061,265 86.5% 934,415 88.5% 846,349 90.4% Covered payroll is not an actuarial factor in determining benefits or funding obligations under applicable Minnesota statutes. 73