2017_0613_FC_Packet - Laserfiche WebLink

Home

CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last t e r m i n a t e d t h e i r public service. G e n e r a l E m p l o y e e s P l a n B e n e f i t s B e n e f i t s a r e b a s ed on a member's highest average salary for any five successive years of a l l o w a b l e s e r v i c e , a g e a nd years of credit at termination of service. Two methods are u s e d t o c o m p u t e b e n e f i t s f o r P E R A ' s C o o r d i n a t e d and Basic Plan members. The retiring m e m b e r r e c e i v e s t h e h i g h e r o f a s t e p - r a t e b e n e f i t accrual formula (Method 1) or a level accrual f o r m u l a ( M e thod 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% o f a v e r a g e s a l a r y f o r e a ch of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first t en years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of a v e r a g e s a l a r y f o r B a s i c P l a n m e m b e r s and 1.7% for Coordinated Plan members for each year of s e r v i c e . F o r m e m b e r s h i r ed prior to July 1, 1989, a full annuity is available when age plus years o f s e r v i c e e q u a l 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Disability b e n e f i t s a r e a v a i l a b l e f o r v e s t e d m e m b e r s , and are based upon years of service and average high- f i v e s a l a r i e s . P o l i c e and Fire Plan Benefits Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for the Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire Plan who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. C. Contributions M i n n e s o t a S t a t u t e s C h a p t e r 353 sets the rates for employer and employee contributions. C o n t r i b u t i o n r a t e s c an only be modified by the state legislature. G e n e r a l E m p l o y e e s F u n d C o n t r i b u t i o n s Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2016. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2016. The City's contributions to the General Employees Fund for the year ended December 31, 2016, were $659,339. The City's contributions were equal to the required contributions as set by state statute. 63 Item 8: Attachment D