Annual_Report_1985_001 - Laserfiche WebLink

Home

CITY OF ROSEVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1985 Note 7 - Pension P1ans The City is involved in three pension plans, with other agencies being responsible for the administration of each plan. The City is making all pension contributions as required by law. Roseville Volunteer Firemen's Relie£ Association - The Association is an independent body that administers a pension plan for 72 active members. State aid to the Association was $83,053 in 1985. 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 £und assets by $114,590 on December 31, 1985. This unfunded accrued liability is being amortized over 20 years, the minimum aliowable by State statute. The most recent actuarial valuation was on December 31, 1982. State statute requires an actuarial valuation every four 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 4.25i to 12% of its employees' wages, and the rate is determined by the particular plan the employee belongs to. The cost of PERA in 1984 and 1985 was $239,080 and $241,122, respectively. State law provides that the City contribute 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 $672,779,645 as of June 30, 1985. The amount of unfunded prior service cost for each governmental unit served by PERA is not available. Federal Insurance Contribution Act (Social Security) - Approximately 60i of the permanent Gity employees are covered by Social Security. The 1984 contribution rate was 7.00% on $37,800 in wages, and the 1985 contribution rate was 7.05% on $39,600 in wages. The cost of Social Security in 1984 and 1985 was $98,777 and $105,740, 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 is self-insured and was responsible for the $120,000 of this liability. The Workers' Compensation Reinsurance Association, a nonprofit organization established by State statute is responsible for the remaining balance of the total liability. The City's liability on December 31, 1985 is $75,297. Note 9- Interfund Receivables and Payable Balances These balances by fund types on December 31, 1985 were: -37-