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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2001 <br />NOTE 5 - OTHER INFORMATION (Continued) <br />D. Annual pension cost <br />For 2001, the City's' annual pension cost of $234,220 is equal to the City's required and actual <br />contributions. The required contribution was determined as part of the January 1, 2001 actuarial <br />valuation. The actuarial assumptions included (a) 5.0% investment rate of return (net of <br />administrative expenses); (b) a mortality table of the 1971 Group Annuity Table; (c) termination of <br />3 percent rate from age 20-30, grading to no terminations after age 45; (d) disability rates based upon <br />75 percent of the Railroad Retirement Board Disability Rates; (e) entry age based upon age on <br />employment date; ( fl retirement age based upon the later of age 55 or 20 yeazs of service; (g) 85 <br />percent of inembers aze assumed to be mazried; (h) normal form of payment based upon joint and <br />100 percent to survivor annuity; (i) asset basis based upon fair value; and (j) level dollar <br />amortization which is suff cient to amortize the unfunded actuarial accrued liability by a closed <br />period ending December 31, 2010 and a closed period of 20 years for Plan amendments. <br />The latest actuarial value of plan liability on January 1, 2001 was $6,787,517 with an increase to <br />$7,372,974 by December 31, 2001. The value of the plan assets, valued at market, totaled <br />$6,263,506 on January 1, 2001, decreasing to $5,743,650 on December 31, 2001. A five-year <br />summary of Assets, Liabilities and funding ratios are listed below: <br />Year <br />1996 <br />1997 <br />1998 <br />1999 <br />2000 <br />2001 <br />Schedule of Funding Progress <br />December 31, 2001 <br />Actuazial Actuarial <br />Value of Accrued Liability <br />Assets (Entry Age) <br />$ 4,230,630 $ <br />5,113,397 <br />5,956,146 <br />6,741,180 <br />6,263,506 <br />5,743,650 <br />Unfunded <br />(Overfunded) Funded <br />Accrued Liability Ratio <br />5,079,348 $ <br />5,854,255 <br />6,029,019 <br />6,200,077 <br />6,787,517 <br />7,372,974 <br />848,718 <br />740,858 <br />72,873 <br />(541,103) <br />524,011 <br />1,629,324 <br />83.29% <br />87.34% <br />98.79% <br />108.73% <br />92.28% <br />77.90% <br />Covered payroll is not an actuarial factor in determining benefits or funding obligations under <br />applicable Minnesota statutes. <br />61 <br />