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CITY OF ROSEVILLE, MINNESOTA
<br />NOTES TO FINANClAL STATEMENTS
<br />December 31, 2014
<br />later of age 55 or 20 years of service; (g) 85 percent of inembers are assumed to be married, with
<br />wives three years younger than husbands; (h) normal for�n of payment based upon joint and 100
<br />percent to survivor annuity; (i) asset basis based upon marlcet 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 eveiy two
<br />years. The latest actuarial value ofplan liability on December 31, 2013 was $9,671,531. The value
<br />of the plan assets, valued at market, totaled $9,545,070 on December 31, 2013. A six-year summaiy
<br />of Assets, Liabilities and funding ratios are listed below:
<br />Year
<br />2008
<br />2009
<br />2010
<br />2011
<br />2012
<br />2013
<br />Schedule ofFunding Progress
<br />December 31, 2013
<br />Actuarial Actuarial UnfLuided
<br />Value of Acerued Liability (Overfunded)
<br />Assets (Entry Age) Accrued Liability
<br />$ 5,749,103 $ 8,568,192 $ 2,819,089
<br />6,784,350 8,651,694
<br />7,524,091 8,798,831
<br />7,402,826 8,750,652
<br />8,173,150 8,666,462
<br />9,545,070 9,671,531
<br />1,867,344
<br />1,274,740
<br />1,347,826
<br />493,312
<br />126,461
<br />Funded
<br />Ratio
<br />67.10%
<br />78.42%
<br />85.51%
<br />84.60%
<br />94.31 %
<br />98.69%
<br />Covered payroll is not an actuarial factor in determining beneiits 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 iirefighters 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 beneiits, benefit levels, einployee 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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