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CITY Of ROSEVIL�E, MINNESOTA NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31,�988 Note 73 - Detined Benefit Pension Plan - VoLunteer Fire Relief Association (Continued) MonthLy Benefit - a memher at ihe fuLL service pension level wiLt receive S�5 per monih for each year ofi service up to a maximum credit of 30 years of service. Lump Sum - At the option of the retiree, a Lump sum setilement of pension benefits may 6e seLected The lump sum shatl 6e 81500 for each year of service. DisabiLitv Retirement Temporary Disabitity - a memher who is temporariLy disabled shalL receive 810 per day, not to exceed 26 weeks. Permanent DisahiLity - a memher who is permanentLy disabled in the tine ot duty shaLt receive the maximum pension set out in the monthLy benefit and Wmp sum section above. The computation wilt assume 20 years service untess the member's years of service are greater. Actual years of service or 20 years, whichever provides the highest 6enefit, wilt be used for computation purposes. Member's Death WhiLe Active ELigibility - Spouse legally married to memher at least one year before separation from service and residing with member at the time of death. Lhild - Under the age of 18 and was born within nine (9) months after death of inem6er. Benefits Spouse - EntitLed to 100% of benefits of inember. Child - It a surviving spouse , there is no additionat 6enefit. If there is no surviving spouse, 100Y. 6enefit to be shared prorata with other surviving chiLdren untit the age of majority. Vested Deferred Must 6e a memher of the association for ten (10) years and served twenty (20) years in the Rosevitte Fire DepartmenY and separated 6efore the age of fifTy (50). Defierral is until after the age of fifty (50) and regutar 6enefit requirements are met. A variety of significant actuarial assumptions are used to determine the standardized measure of the pension 6enetit obligation and these assumptions are summarized 6eLow: * The present vaLue of tuture pension payments was computed by using a discount rate of five percent. The discount rate is equal to the estimated tong-[erm rate of return on current and future investments ot the Pension plan. * Future pension payments refLect no post-retirement 6enefit increases, which is mnsistent uith the Terms of the pension agreeme�t. 45