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CITY OF ROSEV[lLE MINNESOTA NOTES TO FINANC[AL STATEMENTS DECEMBER 31, 7992 Note 9� Sin le Emolover Defined Benefit Pension Plan - Votunteer Fire Retief Associetion (Continued) A variety of significant ectuerial ess�mptions are used to determine the standarized measure of the pension benefit obtigation and these ass�mptions are suimarized below: � • The present value of future pension payments was cm4wted by using a discount rete of five percent. The discount rete is equal to the estimeted long•term rate of return on current and future investments of the pension ptan. * Future pension peyments reflect no post-retireme�t benefit increases, uhieh is consistent with the terms of the pension egreement. Punding Status and Progress - The amount shoun belou as the "pension benefit obtigation" is a standardized disclosure measure of the present value of pension 6enefits, adjusted for the effects of projetted setery increases (if eny) end step-rate benefits, estimated to be payable in the future es e result of service to date. The measure is intended to hetp users assess the funding status of the association on a going- concern basis, assess progress made in accunutating sufficient assets to pay benefits when due, and make comparisons among ertployers. The measure is the attuarial present value ot credited projetted benefits and is independent of the funding method used to determine contributions to the association. The unfunded pension benefit obtigation as of January 1, 7997, the latest availabte information, is as foltous: Pension benefit obligation Retirees end beneficiaries currently receiving benefits and terminated enployees not yet receiving benefits E 7,316,&9 Current employees vested E1,115,570 non-vested 365,311 Totat 1.480.887 Totat pension benefit obligation Net essets availeble for benefits at lower of eost or market Unfunded pension benetit obligation S 2,797,730 2.679.482 E 178.248 No changes in ectuariat assunptions or benefits provisions that would significantly affect the valuetion of the pension benefit obliBation occurred during 1992. Five Yeer Historicel Trend Net assets aveitable for benefits (Expressed as a percent of pension benefit obligation.) 1988 1989 71.2% 78.BX Unfunded pension benefit obligation (Expressed es a percent of ennual z96.4% covered payroll) EmpLoyer contributions (Expressed as a percent of tovered payroll) 71.2% 42 1990 1991 1992 92.5% 90.9% 93.6� 797.9% 62.3% 84.4% 67.3% 8.7X 2.9% 7.9X 8.3X