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LI7Y Oi ROSEVILLE NOTES TO FINFNCIAI STATEMENTS DECEMBER 31. 1993 Noe 9 Sinale Emplover Defined Benefit Pension Ptan - Volunteer Fire Relief Assocation (Continued� Member's Death While Active Eligibility - Spouse legally married to member at least one year before separation from service and residing uith member at the time ot death. Child - Under the age of 18 and uas born within nine (9> months after death of inember. Benefits Spouse - Entitled to 100� of benefits of inember. Child - If a surviving spouse, there is no additional benefit. [f there is no surviving spouse, 100% benefit to be shared prorating uith other surviving chitdren until the age of majority. Vested Deferred � Must be a member of the association for ten (10) years and served tuenty C20) years in the Roseville Fire Department and separated before the age of fifty (50). Deferrat is until after the age of fifty (50) and regular benefit requirements are met. A variety of significant actuarial assumptions are used to determine the standarized measure of the pension benefit obligation and these assu�tions are sumnarized belou: * The present vatue of future pension payments uas computed by using a disco�nt rate of five percent. The discount rate is equal to the estimated long-term rate of return on current and future investments of the pension plan. * Future pension paymenxs reflect no post-retirement benefit increases, uhich is consistent with the terms of the pension agreement. Funding Status and Progress - The amount shown betou as the "pension benefit obtigation" is a standardized disctosure measure of the present value of pension benefits, adjusted for the effects of projected satary increases (if any) arxi step-rate benefits, estimated to be peyable in the future as a 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 accunutatin9 sufficient essets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the association. The unfunded pension benefit obligation as of Januery 7, 1993, the latest avaitable information, is as follous: Pension benefit obligation Retirees and beneficiaries currently receiving benefits and terminated employees not yet $ � g52,847 receiving benefits Current employees vested 51,311,325 non-vested 422,677 �,734,002 Totat Total pension benefit obtigation E 3,586,849 Net assets availabte for benefits at 2 730,257 louer of cost or market Unfunded pension benefit obtigation 8 856.592 No changes uere made in actuarial assimptions tor 1993 houever benefit provisions were increased causing a significant change in the vatuation of the pension benefit obtigation. 43