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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEM9ER 31,1988 Note 12 - Defined 9enefit Pension PLans - Statewide (Continued) hutions required of all participating entities. ior the PEPFF, con[ributions for the year ended June 30, �988, represented 0.83 percent of totat contributions required of aLL participating entities. C. Funding Status and Progress 1. Pension Benefit Obtigation The 'pension henefit o6tigation' is a standardized discLosure measure of the present value ot pension bene- fits, adjusted for the effects of projected salary increases and step-rate 6enefits, estimated to 6e payabte in the future as a result of empLoyee service to date. The measure, uhich is the actuariat present vatue of credited projected 6enefits, is intended to help users assess the PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay henefits when due, and make comparisons among PuhLic EmpLoyees Retirement Systems and empLoyers. PERA does not make separate measurements of assets and pension henefit obtigation for individuaL employers. The pension benefit obligations of PERA as of June 30, 1988, were as foLLows: Totat pension henefit obLigations Net assets availabLe for benefits, at market Unfunded pension benefit obLigation (assets in ex<ess of obligations) PERF 4 3,334,423,000 S 2,749,289 000 S( 585 134,000) PEPFF S 512,921,000 S 584,871,000 S 71.950 000 The measurement of the pension 6enefit obLigation is hased on an actuarial vatuation as of June 3�, 1988. Net assets avaiLabte to pay pension benefits were valued as of June 30, 1988. 2. Change in ActuariaL Methods Prior to fiscaL year 1988, the mortatity ta6te used was the UP-1984 Unisex set forWard one year tor males and sei back four years for femates. For fiscat year 1988, the PERA 9oard of 7rustees approved the use of the 1971 Group Annuity MortaLity TabLe projected to 1984 for maLes and femates. The change was made in order to reduce, if not eLiminate, the series of targe, annually recurring mortality losses that have 6een reatized in the tast four years. With the adoption of the new mortaLity tahLe, the projected benefit obti- gation intreased 5179,670,000 in the Pubtic Employees Retirement Fund and 518,805,000 in the PubLic Employ- ees Police and Fire Fund. 43