Annual_Report_1993_001 - Laserfiche WebLink

Home

CITY DF ROSEVILLE NOTES TO FINRNCIAL STATEMENTS DECEMBER 31. 7993 Note 9- SinaLe Emolover Defined Benefit Pension Plan - Volunteer Fire Relief Association (Continued) Six Year Historicat Trend Net assets available for benefits (Expressed as a percent of pension benefit obtigation.) Unfunded pension benefit obtigation (Expressed as a percent of annual covered payrotl) Emptoyer contributions (Expressed as a percent of covered payroll) Contributions Required and Contributions Made 1988 1989 7990 71.2% 78.8% 296.4% 197.9% 71.2% 8.7% 7991 1992 1993 92.5% 90.9% 93.6% 76.1% 62.3% 84.4% 67.3% 264.2% 2.9% 7.9% 8.3% 56.6% FinanciaL requirements of the retief association are determined on an actuarial basis using the entry age normat actuariat cost method. �Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 2012. The City's minimum obligation is the financial requirement for the year tess anticipated member contributions and state aids. Any additional payments by the City shatl be used to amortize the unfunded liabiLity of the relief association. The funding strategy for normal cost and the unfunded actuarial accrued tiabitity shouLd provide sufficient resources to pay relief association benefits on a timely basis. Contributions to the retief association from the City in 1993 totated 5783,647. The future actuariat determined contributions represent funding for normet cost 5113,�00 and the emortization of the unfunded actuariat accrued Liability is 593,605. Contributions made by the City of Rosevitle represent 56.6 percent of covered payrolt for the year. No state aid was received in 7993. Significant actuarial assumptions used to compute pension contribution requirements are substantially the same except the benefits uere increased. The computation of the pension contribution requirements for 1993 was based on the same actuarial assumptions, actuarial funding method, and other si9nificant factors used to determine pension contribution requirements as in previous years. Ten Year Historical Trend Information (Unaudited) Ten-year historical trend information retated to the pension plan is presented in the relief associations annual fina�cial report. The information is presented to enable the reader to assess the progress made by the RoseviLle Fire Fighter's Relief Association in eccumulating sufficient assets to pay pension benefits as they become due. information prior to 1987 is not avaiLabte, houever, for the seven years ended 1987, 1988, 1989, 7990, 1991, t992 and 1993 respectively, available assets uere sufficient to fund 65.3%, 71.2�, 78.8%, 92.5%, 90.8%, 93.6% and 76.1% of the pension benefit obligation. Unfunded pension benefit obligation represented 371.7%, 296.4%, 197.9%, 62.3�, 84.4%, 67.7% end 264.2% of-the annual payroll for employees covered by the RoseviLLe Volunteer Fire Relief Association for 1988, 1989, 1990, 1991, 7992 and 1993 respectively. Shouing unfunded pension benefit obtigation as a percenta9e of annual covered payroll approximateLy adjust for the effects of inflation for analysis purposes. In addition, for the seven years ended 7987, 1988, 1989, 1990, 1991, 1992 and 1993 the City's contributions to the System, atl made in accordance with actuerially determined requirements, uere O.00k, 11.2%, 8.1, 2.9%, 7.9%, 8.3� and 56.6% respectively of annual covered payrol l. 44