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CITY OF ROSEVILLE,MINNESOTA
<br /> NOTES TO FINANCIAL STATEMENTS
<br /> December 31, 2014
<br /> later of age 55 or 20 years of service; (g) 85 percent of members are assumed to be married, with
<br /> wives three years younger than husbands; (h) normal form of payment based upon joint and 100
<br /> percent to survivor annuity; (i) asset basis based upon market value; and(j) level dollar amortization
<br /> which is sufficient to amortize the unfunded actuarial accrued liability by a closed period ending
<br /> December 31, 2012 and a closed period of 11 years for Plan amendments. Inflation rates are not
<br /> applicable in the valuation of the fire relief net pension obligation.
<br /> The Fire Relief Association is required to have an actuarial valuation completed once every two
<br /> years. The latest actuarial value of plan liability on December 31, 2013 was $9,671,531. The value
<br /> of the plan assets, valued at market, totaled$9,545,070 on December 31, 2013. A six-year summary
<br /> of Assets, Liabilities and funding ratios are listed below:
<br /> Schedule of Funding Progress
<br /> December 31, 2013
<br /> Actuarial Actuarial Unfunded
<br /> Value of Accrued Liability (Overfimded) Funded
<br /> Year Assets (Entry Age) Accrued Liability Ratio
<br /> 2008 $5,749,103 $ 8,568,192 $ 2,819,089 67.10%
<br /> 2009 6,784,350 8,651,694 1,867,344 78.42%
<br /> 2010 7,524,091 8,798,831 1,274,740 85.51%
<br /> 2011 7,402,826 8,750,652 1,347,826 84.60%
<br /> 2012 8,173,150 8,666,462 493,312 94.31%
<br /> 2013 9,545,070 9,671,531 126,461 98.69%
<br /> Covered payroll is not an actuarial factor in determining benefits or funding obligations under
<br /> applicable Minnesota statutes.
<br /> Note 5 OTHER POST-EMPLOYMENT BENEFITS
<br /> A. Plan Description
<br /> In addition to providing the pension benefits described in Note 5, the City provides post-employment
<br /> health care benefits (as defined in paragraph B) for retired employees and police and firefighters disabled
<br /> in the line of duty,through a single-employer defined benefit plan. The term Plan refers to the City's
<br /> requirement by State Statute to provide retirees with access to health insurance. The OPEB plan is
<br /> by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61
<br /> Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions
<br /> are governed by the City and can be amended by the City through its personnel manual and collective
<br /> bargaining agreements with employee groups. The Plan is not accounted for as a trust fund,as an
<br /> irrevocable trust has not been established to account for the plan. The Plan does not issue a separate
<br /> financial report.
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