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CITY OF ROSEVILLE
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2005
<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, 2005 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 based upon age on employment
<br />date; (f) retirement age based upon the later of age 55 or 20 years of service; (g) 85 percent of members
<br />are assumed to be married, with wives three years younger than husbands; (h) normal form of payment
<br />based upon joint and 100 percent to survivor annuity; (i) asset basis based upon market value; and (j)
<br />level dollar amortization which is sufficient to amortize the unfunded actuarial accrued liability by a
<br />closed period ending December 31, 2017 and a closed period of 20 years for Plan amendments.
<br />The latest actuarial value of plan liability on December 31, 2005 was $8,099,640. The value of the plan
<br />assets, valued at market, totaled $7,165,225 on December 31, 2005. A six -year summary of Assets,
<br />Liabilities and funding ratios are listed below:
<br />Schedule of Funding Progress
<br />December 31, 2005
<br />Unfunded
<br />Actuarial
<br />Actuarial
<br />Funded
<br />Value of
<br />Accrued Liability
<br />Year
<br />Assets
<br />(Entry Age)
<br />2000
<br />6,263,506
<br />6,787,517
<br />2001
<br />5,743,650
<br />7,372,974
<br />2002
<br />5,12708
<br />7,489,194
<br />2003
<br />6,19509
<br />7,760,496
<br />2004
<br />6,812,594
<br />7,873,859
<br />2005
<br />7,165,225
<br />8,099,640
<br />Unfunded
<br />(Overfunded)
<br />Funded
<br />Accrued Liability
<br />Ratio
<br />524,011
<br />92.3%
<br />1,629,324
<br />77.9%
<br />2,361,306
<br />68.5%
<br />1,565,407
<br />79.8%
<br />1,061,265
<br />86.5%
<br />934,415
<br />88.5%
<br />Covered payroll is not an actuarial factor in determining benefits or funding obligations under applicable
<br />Minnesota statutes.
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