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.. � � C1TY OF ROSEVILLE. MIMNESOTA <br />. � MQTES TO FINANCGL STATEXENTS fCdITINUED) <br />� � � DECEMBER 37. /991 <br />.���Note 9- Defined Benefit Vensim Plans - Statevide <br />'A. �Vl�n Desoription <br />Alt #ull-tiwe ud e�rtain p�rt-ti�ne aployees of tM City are ewerad by defined 6enefit pmsion ptans <br />adninistered by the Public Eeqtoyeea Retiremmt Asaoeistion of Mimesots (PERA). PERA adninisters the <br />P�bIiC:Employeas Retiranent Fvd (PER:) uW ths Pubie EuQloyen Polite ard Fin Fvd (PEPPF) which are <br />oost.sharinp multiple-arptoyer publie eaptoyee rKira�ant �y�tere. GERF menbers belonp to either the <br />Coordirnt�d Pl�n or the Basie Vlen. Coordineted members are eoverad by Sxist Security end Basic members <br />are;not. �#ll naw madxrs euat p�rticipete in tAe Coordin�ted Pl�n. All poliee officers, fire tighters and <br />pe�ce.pffieers rho qwtify for menbenhip by stetute �re eovercd by the PEPPF. The payroll for employees <br />covered �by PERF AND PEPfF fo� tbe year ardad Deeenber 31, 1991, ws 52,761,512 and 51,755,742 respectively <br />;:the.-tity�s tot�t p�yroll n t5,307,154. <br />Pera provides retf�emmt benefits as wll ss disebility benefits to n�enbers, and benefits to survivor upon death <br />et�etipibtt menbers. Banefits ere estabtished by State Statute, and vest after three years of eradited service. <br />the�:defin�d retiremmt bmefits ere bssad on mem6e��s avereye satary for xry fioe successive yeers of alto�eble <br />s�rviee, �pe, �:ard ye��s of eradit �t termirutia+ of se�vic�. Two aiethods are used to canput� benefits for <br />Coordtrotcd �nd Bssie menbers. The �etirirg �nember �eceiv�s the Aipher of atep-rate benefit seerwl fornule <br />(Method 1).or � Level aeeruel fonau4 (Method 2>. Unde� Method 1, the urufty xerwt rete for a Basie member <br />ia 2:pereent of avero9e sd�ry for e�eh of the fint 10 ye�rs of service srd 2.5 pe�emt for eseh remsining <br />. yee�. ��for � Coordirnttd �nenber, the arvmity xerud r�te is t pereent of sveraQe eslery for eseh of the first <br />10 yean .and 1.5 pe�eent.}or eseh rdroininp yesr. Usinp Method 2, the arvwity accrwl rate is 2.5 percent of <br />werpe s�l�ry for 8asie �nenben and 1.5 pereent for Coordin�ted n�nbers. For OEPFF mcnbers, the anrwity <br />uerual rate�is 2.5 peroent of werepe salary for exh of the fint 25 yeara end 2 percmt for each remeining <br />yeer. For�6oth PERi mcnbers whose errwity is calculated usinp Method t, erd for etl PEP:F members, a full <br />amuity is ��veileble whm aqe plw yesrs of servfce eqwt 90, <br />Then ere differmt,types of�amuities availabie to meibers upon retiremmt. A normet emuity is a lifecime <br />�rr�uity thac seeses,upon,the.desth of the retiree. No survivor wwity ie p�yeble. There ere alsa various <br />iypes ot joint erd eurvivor xruity optiona availebte yhich rill reduce the ncnthly rwrn�et errwity amount, <br />becsuse.the amuity is psyable ove� jo3nt lives. Members msy elso lesve their contributions in the fund upon <br />termirntian of�. p8lie service, in order to qwlify for • deferred urwity at retiremmt ege. Refunds of <br />eontributiora �re �vailabte at erry time to ncnbers yho le�ve publie service, 6ut before retiremmt benefi[s <br />beyin. . � � . <br />B. :Contri6utimc Rcquired srd Contributiare Mede <br />Mimnota Statutn Chapter.353 aets the rate� tor aployer �nd employee contri6utions. The City mekes annuel <br />eontrihutians to the.,pemioa pteru equsl to the want raquired by atate stetues. Accordirp to Minnesote <br />Statues Chepter. 356.215, Sud. <(y) the d�te of full ttrdinp required for VERF �nd GEPF: is the yeer 2020. As <br />p�rt�of the urxul.�ctwri�l valwtfon, iERA's �ctu�ry detersfnes tMe sutficienay oi the steWtory contribution <br />rKes toverds�meetinp the required futt fvdinp deedtine. The sctusry caiperea the eatuel coneribution rete <br />to ��"required" contri6utian nte. Current stetutory contribution ntea and ectwrietty required contribution <br />ntes for�:the plana �te �s follwe: <br />43 <br />