Annual_Report_1990_001 - Laserfiche WebLink

Home

C RY OF ROSEVILLE, MiNNESOTA NOTES TO FINANCIAL STATEMENTS - CCONTINUED) DECEMBER 37,1990 Note 11 - Defined eenefit Pension Plan - Votunteer Fire Reliet Fssociation (Continued) Contributions Required and Contributions Made Financial requirements of the relief association are determined on an actuarial basis using the entry age normal actuarial cost method. Normat cos[ is tunded on a curren[ basis. The untunded actuarial accrued liability is to be funded by Decem6er 31, 2010. The City's minimum o6tigation is the financial requirement for the year tess anticipated member contributions and staie aids. Any additional payments by the City shall 6e used to amortize the unfunded liabiLity of the retief association. 7he funding strategy for normat cost and the unfunded actuarial accrued liabili[y should provide sufticient resources to pay retief association benetits on a timely hasis. Totat contributions to the reLief association in 1990 amounted to 8121,328, of uhich 58,896 uas made by the City of Roseville. The contributed amounts uere actuarially determined as described above and uere based on an actuariat valuation as of January 7, 1989. The contributi�ons represent funding for normal cost 886,420 and the amortization of the unfunded actuariat accrued liability is 834,908. Contributions made by the City ofi Rosevitte represent 2.9 percent of covered payroll for the year. The state aid received in 1990, the City's contri bution plus excess plan interest earnings exceeded cwrent cost and amortization ot [he unfund- ed portion. Significant actuariat assumptions used to compute pension contrihution requirements are substantiatly the same as those used to determine the standardized measure of the pension obligation. The romputation of the pension contribution requirements for 1990 was based on the same acivarial asswnp- tions, benefit provision, actuarial funding method, and other signifiwnt factors used to determine pension contrfbution requirements in previous years. . Ten Year Nistorical Trend Information Nnaudited) Ten-year historical trend information related to the pension plan is presented in the relief associations annual financiaL report. The information is presented to enable the reader to assess the progress made by the Roseville Fire Fighter's Retief Association in accumutating sufficient assets to pay pension benetits as they become due. Information prior to 1987 is not availabte, houever, for the four years ended 1987, 7988, 1989, and 7990 respectively, avaitable assets uere sufficient to fund 65 3%, 71.Z%, 78.8% and 92.5% of She pension benefit obligation. �ntunded pension benefit obligation represented 371.T/, 296.4%, 197.9% and 623% of the annual payroll for employees covered 6y the RoseviLle Volunteer Fire Relief Association for 7988, 1989 and 7990 respeciively. Shouing untunded pension henefit obligation as a perrentage of annual covered payroLl approximately adjust for the effecTs of inflation for analysis purposes. In addition, for the four years ended 1987, 1988, 1989 and 1990, the City's contributions ro the System, all made in accord- ance uith actuarially determined requirements, uere 0.00% 11.2%, 8.1, and 2.9% and respec[ivety of annual covered payrotL. $�