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y CITY OF ROSEVILLE, MINNESOTA NOTES TO TI-IE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1983 Note 7 - Pension P1a�s The City is involved in three pension plans, with other agencies being responsible far the administration of each plan. The City is making a11 pension contributions as required by 1aw. Roseville Volunteer Firemen's Relief Association - The Association is an independent body that administers a pension plan for 76 active members. State aid to the Association was $71,151 in 1983. The money received was in excess of the required State statutory contribution necessary for this year's normal cost and the unfunded accrued liability. The actual liability exceeds pension fund assets by $155,090 on December 31, 1983. 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 - Al1 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 1982 and 1983 was $225,345 and $235,833, respectively. State law provides that the City contri6ute an amount that will fund the current year costs as they accrue and to fund the amortization of prior service cost with full funding required by the year 2009. According to the latest PERA annual report, the unfunded accrued liability was $420,259,028 as of June 30, 1983. The amount of unfunded prior 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 1982 contributio❑ rate was 6.70% on $32,400 in wages, and the 1983 contribution rate was 6.70% on $35,700 i❑ wages. The cost of Social Security in 1982 and 1983 was $85,217 and $90,486, respectively. Note 8- Claims - Workers' Compensation Self-Insurance Fund A liability of $420,000 was incurred, as set by State statute, for the death of a City police officer in 1982. The City was self-insured and is responsible for the first $120,000 of this liability. The Workers' Compensation Reinsurance Association, a non-profit organization established by state statute is responsible for the remaining balance of the total liability. The financial statements for 1982 have been restated to reflect the City's share of this liability. The City's liability on December 31, 1983 is $97,553. Note 9 - Commitments The City leases space for one liquor store. This lease expires on August 31, 1984. Scheduled rent (including taxes, insurance and maintenance which are also paid by the City) will be $8,000 to the end of the lease. -.i9-