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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS - (LONTIN�E�) DECEMBER 37, 1987 Note 13 - Defined eenefit Pension Plan - VOLunteer Fire Relief Association (Continued) Funding Stat�s and Progress - The amount shown beLow as the "pension 6enefit obtigation" is a standardized disclosure measure of the present value ot pension benetits, adjusted tor the etfects of proje<ted salary increases (if any) a�d step-rate 6enefits, estimated to be payable in the future as a resuLt of service to date. The measure is intended to help users assess the funding siatus of the association on a going-con[ern 6asis, assess progress made in accumutating sufficient assets to pay benefits when due, and make tomparisons among emptoyers. The measure is the actuariaL present value of credited projeaed benefits and is independent of the funding method used to determine contributions to the association. 7he the unfunded pension benefit obligation as of January 1, 1987, was as follows: Pension benefit o6ligation Retirees and heneficiaries currently receiving benetits and termi�aied empLoyees not yet receiving benefits $ 772,239 Current employees 1,851,665 Total pension benefii obLigation 8 2,623,904 Net assets availahLe for 6enefits at cost 1,711,708 (Market vaLue 51,551,441) Unfunded pension benefit obligation -8 9�2,196 No changes in actuarial assumptions or benefits provisions that aoutd significantty affect the vaLuation of the pension benefit o6ligation occurred during 1987. Contributions flequired and Contri6utions Made Financial requirements of the reLief association are determined on an actuarial basis using the entry age normat actuarial cost method. NormaL cosi is funded on a current basis. The unfunded actuarial accrued Lia6ility is to be funded by Decem6er 31, 2007. The City's minimum obligation is the financiat requirement for the year less anticipated member contributions and s[ate aids. Any additional payments 6y the City shall 6e u5ed to amortize the unfunded LiahiLity of the reLief association. The funding strategy for normal wst and the unfunded actuariaL accrued LiabiLity shoutd provide sufficient resources to pay reLief association henefits on a timety hasis. To[at contributions to the retief association in 1987 amounted to S 0, of which S 0 was made by the City of Roseville. The contributed amounts were actuariaLLy determined as descri6ed above and were 6ased on an actuarial vatuation as of January 1, 1987. The contributions represent funding for normal cost ( S 0) and the amortiza[ion of the unfunded actuarial accrued liability is (S 0). Contributions made by the City of ftosevilLe represent 0 percent of covered payrott for the year. The state aid received in 7987 plus excess plan interest earnings met current cost and amortization of the unfunded portion. -46-