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CITY OP ROSHVZLLH NOT85 TO FINANCIAL STATHM6NTS DBC6MB8A 31. 1994 N e-➢ f' d B f't P eion Plan - SCatewide (Contirtued) Por Che PBRP, aigni£icant actuarial aeeumptione veed in the ca7eulation of the penaion beneEit obligation inelude (a) a rate of return on the inveetment of preeent and future aeaete o£ B.5 percent per yeaz, compounded annvally, prior to setirement, and 5 percmt per year, compounded annually, following retizement; (b) projected ealary increaees taken £mm a select and ultimate table; (c) payroll gmwth at 6 percent per year, coneieting of 5 percene for inflatio� and 1 percent due to gmvth in group eize; (d) poet-retizement benefit inereaeee that are accounted for by the 5 percent rate of retum aeeumption £ollowing retimment; and (e) mortality ratee baeed on the 1983 Group Axuiuity Mortality Table aet £osward one year for retired membere and eet back five yeare £or each active member. Actuarial aeeumptione veed in the calculation of the P6PPP include (a) a rate e£ retvm on the investment of preeent and £uture aeeete of 8.5 percent per year, compounded axuivally, prior to zetirement, and 5 percent per yeaz, compounded azinually, following retirement; (b) projected ealasy increaeee o£ 6.5 percent per year, compounded annually, attributable to the efEecte oE inflation; (c) poet-retizement inereaeee [hat am ac<ounted for by the 5 percent zate o£ retum aeeumption following retirement; and (d) mortality ratee baeed on the 19]1 Group Annuity Mortality Table pxnjected to 1989 foz males and £emalea. 2. Changee in Plan Provieione The 1994 legielative eaeeion did not include eny benefit impzevemente which would impact funding eeete Eor the PHRP and the PePPP. 3. Changes in Actuarial Aeaumptione Prior [o £iecal year 1994, the ealary increaee aeeumption and the mortality tablee ueed in the calculation of peneion benefit obligation for the PeRP were the same ae thoee epecified £or the P6PPP. Foz the luly 1, 1999 actuazial valuation, PBRA'e board oE tzuateea appmved n<v mortality satea updated Co the 1983 Group Annuity Mortality Table, salary inczeaeee whith weze ehanged to a eelect and ultimate table and a new payroll gmwth aeeumption which was changed Ezom 6.5 percent to 6 percent. Theee changee vere made to reflect aetual e�cperience of the plan. With the adoption of the actuarial aeeumption ehangee and the new mortali[y tablea for the P%RF, the peneion benefit obliga[ion increaeed 556,596,000. The actuaiial aeeumption changee aleo neeeeaitated a$81,201,000 tranefex Eiom the PfiRF BeneEit Reeerve to the PBRP MinneeoCa Poet Retirament Inveatment Pund (MPRIP) Reeerve Yo finance Che increaeed obligation Eor futuze retixement ben<£ite. The change in the mor[ality zate aseumpeion increaeed the PBRP'e coste because pensionere are living longer than aesumed previovely. The change in the ealary increaee aeevmption, howevez, offset eome of the additional coete becavee lover ealary increaeee genarally tranelate into lower beneEit liabilities in the future. Potential changee in the aeeumptione ueed for the PePPP may be made in the future after completion o£ a special experience etudy Eor that fund. Completion of the PHPPP expezience etudy ie expected by Febzvazy 1, 1995. D. Ten-yeat Hietozical Trend InEosmation Ten-year hietozical trend infozmation ie preeented in PSRA•e Compreheneive Axvival Pinancial Report for the year ended June 30, 1994. Thie in£ozmation ie uaeful in aeeeeeing the peneion plan'e ae- cumulaCio� of eufficient aeeeta to pay peneion benefite aa they become due. 6. Related Pasty Inveatmente As o£ June 30, 1994, and for the fiatal year then ended, PHRA held no aecuritiee ieeued by the City or other related partiee. Note 9- Sin le 8m lo D fi d 8 ne£it Peneion Plan - Volunteer Pire Relief Aeeociation The City <ontributee to the City of Roeeville Pixe Pighter'e Relief Aeeociation (^Aeeociation"), a eingle employer public employee zetirement eyetem tha[ acte ae a common inveetment and a�inietzator Eor the City'e firefightere. Volunteer firefightere of the City are mambere of the Roeeville Pize Pightez'e Relie£ Aeeociation. Theee benefit provisione and all other requizemente are coneietent with enabling etate etatutee. Volunteexs o£ the fire department are �ot requized Lo contribute any percent the relie£ aeeociation. The City levied property taxee at the direttion of fire relief aeeociation and paaeee through etate aide allocated to the plan, enabling etate etatutee. 40 of theiz gmee earninge to and for the bene£it of the all in accordance with