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CITY OF ROSEVILLE, MINNESOTA NOTES TO TAE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 Note 7 - Pension Plans The City is involved in three pension plans, with other agencies being responsible for the administration of each plan. The City is making a11 pension contributions as required by law. � Roseville Volunteer Firemen's Relief Association - The Association is an independent body that administers a pension plan for 75 active members. State aid to the Association was $72,154 in 1982. The money received was in excess of the required State statutory contribution necessary for this year's normal cost and the unfunded accrued liabil�ity. The actual liability �_-. exceeds pension fund assets by $113,973 on December 31, 1982. This unfunded accrued liability is being amortized over 20 years, the minimum allowable by State statute. The most recent actuarial valuation was on December 31, 1982. State statute requires an actuarial valuation every two years. Public Employee Retirement Association - All permanent City employees are covered by the Public Employee Retirement Association (PERA) which is a State-wide plan and is administered by an independent agency of the State of Minnesota. The City's contribution ranges from 5.5% to 12% of its employees' wages, and the rate is determined by the particular plan the employee belongs to. The cost of PERA in 1981 and 1982 was $211,134, and $225,345, respectively. State law provides that the City contribute an amount that will fund the current year cost as they accrue and to fund the amortization of prior service cost with fu11 funding required by the year 2010. According to the latest PERA annual report, the unfunded accrued liability was $382,031,130 as of Sune 30, 1982. The amount of � unfunded priar service cost for each governmental unit served by PERA is not available. Federal Insurance Contribution Act (Social Security) - Approximately 60% of the permanent City employees are covered by Social Security. The 1981 contribution rate was 6.65% on $29,700 in wages, and the 1982 contribution rate was 6.70% on $32,400 in wages. The cost of Social Security in 1981 and 1982 ',zas $77,277 and $85,217, respectively. Note 8 - Claims - Workers'Compensation The City incurred a claim of $420,000 for the death of a police officer in 1982. The City is self-insured for the first $120,000 of this claim and the Workers' Compensation Reinsurance Association, a nonprofit organization established by State statute, is responsible for the remaining balance of the total claim. The total amount of the claim is set by State statute. Note 9 - Commitments The City leases space for one liquor store. This lease expires on August 31, 1983. Scheduled rent (exclusive of taxes, insurance and maintenance iahich are also paid by the City) will be $3,618 to the end of the lease. -40-