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CITY OF ROSEVILLE, MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2016 <br /> <br /> <br /> <br /> <br /> C. Employee retirement systems and pension plans <br /> <br />The city participates in various pension plans, total pension expense for the year ended December <br />31, 2016 was $4,864,427. The components of pension expense are noted in the following plan <br />summaries. <br /> <br />1. Public Employees’ Retirement Association <br /> <br />A. Plan Description <br /> <br /> T h e C i ty participates in the following cost-sharing multiple-employer defined benefit pension <br /> p l a n s a d m i n i s t e r ed by PERA. PERA's defined benefit pension plans are established and <br /> a d m i n i s t e r e d i n accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined <br /> b e n e f i t p e n s ion plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. <br /> <br />General Employees Retirement Plan (General Employees Plan (accounted for in the General <br />Employees Fund) <br /> <br />All full-time and certain part-time employees of the City are covered by the General Employees <br />Plan. General Employees Plan members belong to either the Coordinated Plan or the Basic Plan. <br />Coordinated Plan members are covered by Social Security and Basic Plan members are not. The <br />Basic Plan was closed to new members in 1967. All new members must participate in the <br />Coordinated Plan. <br /> <br />Public Employees Police and Fire Plan (Police and Fire Plan (accounted for in the Police and Fire <br />Fund) <br /> <br />The Police and Fire Plan originally established for police officers and firefighters not covered by <br />a local relief association, now covers all police officers and firefighters hired since 1980. <br />Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters <br />belonging to a local relief association that elected to merge with and transfer assets and <br />administration to PERA. <br /> <br />B. Benefits Provided <br /> <br /> P E R A p r o v i d e s r e t i r e m e n t, disability, and death benefits. Benefit provisions are established by <br /> s t a t e s t a t u t e and can only be modified by the state legislature. <br /> <br /> B e n e f i t i n c r e a s e s a r e p r o v i d e d to benefit recipients each January. Increases are related to the <br /> funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years <br /> a r e g i v en 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen <br /> b e l o w 80%, are given 1% increases. <br /> <br /> <br /> <br /> <br />62 <br />Item 8: Attachment D