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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.
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