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CITY OF ROSEVILLE, MINNESOT0. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31,1988 Not 13 - Defined eenefit Pension Ptan - VoWnteer Fire Relief Association (Cantinued) Contri6utions Required and Contributions Made Financial requirements of the reLief association are determined on an actuarial hasis using the entry age normal actuariaL cost method. Normal mst is funded on a current basis. The unfunded actuariaL accrued liabitity is to 6e funded hy December 31, 2007. The City's minimum obtigation is the financial requirement tor the year Less anticipated member contributions and state aids. Any additional payments by the City shaLl 6e used to amortize the unfunded liabit9ty of the relief association. The funding stretegy for normal mst and the unfunded acivarial accrued Lia6iLiiy shouLd provide sufficient resources to pay retief association 6enefits on a timely basis. Totat contributions to the reliet association in 1988 amounTed to 8135,503, of uhich 528,566 was made by the City of RoseviLLe. The contributed amounts were actuarially determined as described ahove and were based on an actuarial valuation as of January 1, 1987. The <ontributions represent funding for normaL cost 886,4200 and the amortization of the unfunded actuariaL accrued Liability is 549,083. Contributions made by the City of RoseviLle represent 11.2 percent of covered payroLt for the year. The state aid received in 1988, the City's contribution pWs excess plan interest earnings exceeded current cost and amortization of the untund- ed portion. Significant actuarial assumptions used to compute pension contribution requirements are substantiaLty the same as those used to determine the standard5zed measure of the pension obligation. The computation ot the pensiom m�tri6ution requirements for 1988 was 6ased on the same actuariaL assump- tions, benefit provision, actuariaL funding method, and other significant factors used to determine pension contribution requirements in previous years. Ten Year Historical Trend Information (llnaudited) Ten-year historical trend information reLated to the pension pLan is presented in the reLiet associations annuaL financial report. 7he information is presented to ena6Le the reader to assess the progress made by the RoseviLte Fire Fighter's ReLief Association in accumuLaiing sutficient assets to pay pension benefits as they become due. Information prior to 1987 is not avaiLabLe, however, for the tvo years ended 1987 and 1988, respectively, available assets were sufficient to fund 65.3X and 7t.2X of ihe pension 6enetit obliga- tion. Unfunded pension benefit o6ligation represented 371.7� and 296.4% of the annual payroll for employees mvered 6y the RosevilLe Votunteer Fire Retief Asso<iation for 1987 and 7988 respectivety. Shouing unfunded pension henefit obligation as a percentage of annual covered payroLl approximately adjust for the effects of inftation for anatysis purposes. In addition, for the tuo years ended 7987 and 1988, the City's contri6u- tions to the System, aLL made in accordance with actuariatty determi�ed requirements, were O.00Y. and 1'1.2X respectiveLy of annuat covered payroLL. ReLated PartY Investments Related Party Investments - During 1988 and as of December 37, 1988, the Association heLd no securities issued by the City or other retated parties. 47