Annual_Report_1990_001 - Laserfiche WebLink

Home

CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS - (CONTiNUED) DECEMBER 31.1990 Noie 10 - Oefined Benefit Pension Plans - Statewide (Continued) either the Coordinated Plan or the Basic Ptan. Coordinated members are covered by Social Securi2y and 8asic members are not. All neu members must participate in the Coordinated Plan. plt potice oFficers, fire fighters and peace officers uho quaLify for membership by statute are covered 6y the PEPFF. 7he payroll for employees covered 6y PERF AN� PEPFF for the year ended December 31, 1990, uas 52,625,118 and 81,748,650 respectivety ; the City's total payroll was 55,078,881. PERA provides retirement benefits as well as disa6itity benefits to members, and benefits to survivor upon death of eligible members. Benefits are established by State Statute, and vest after three years of credib ed service. The defined retirement benefits are based on member's average salary tor any five successive years of allowable service, age, and years of credit at termination of service. Tuo methods are used to � compute benefits for Loordinated and Basic members. The retiring member receives the hSgher of step-rate benefit accrual formuLa (Method 1) or a level accrual formula (Method 2). tlnder Method 1, the annuity atcruat raie tor a Basic member is 2 percent of average salary for each of the first 10 years of service and � 2.5 percent for each remaining year. for a Coordinated member, the annuity accruaL rate is 7 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accruat rate is 2.5 percent of average salary for Basic members and LS percent for Coordinated members, ior PEPFP members, the annuity accruat rate is 2.5 percent of average salary for each of the first 25 years and 2 percent for each remaining year. For both PERF members whose annuSty is calculated using Method 1, and for atL PEPPP members, a full annuity.is available uhen age plus years of service equat 90. There are different types of annuities avaitahle to members upon retirement. A normal annuity is a titetime annuity that reases upon the death of the retiree. No survivor annuity is payable. There are also various . types of joint and survivor annuity ootions available uhich will reduce the monthly normal annuity amount, 6ecause the annuity is payable over joint lives. Members may also teave their coniribu[ions in the fund � upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members uho leave pubLic service, but 6etore retirement bene- - tits begin. � B. Coniributions Required and ContrSbutions Made Minnesota Statues Chapter 353 sets the rates for employer and employee contri6utions. The City makes annual contributions to the pension ptans equal to the amount required by state statues. According to Minnesota Statues Chapter 356.215, Sud. 4(g) the date of tull funding required for PERF and PEPFF is the year 2020. As part of the annuat actuarial valuation, PERA's actuary determines the sufficSency of the statutory contri- bution �ates touards meeiing the required futt funding deadline. The actuary compares the actuat contribu- tion rate to a°required" conTribution rate. Current statutory contribution rates and actuarially required contribution raTes for the plans are as follows: - �