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CZT'Y OF ROSSVILL6 NOTES TO FSNANCIAL STATBMHNTS DBCSMH6R 31. 1994 N t 9 S' 1 6v1p1 Y D f� d B f't P P1 - V 1 t P're Relie£ Asaoeiation (Continued) Plan Deeerintion: Volunteer fire £ightere of the City join the aaeociation under the following requirements: (1) They cax�not be a aubetitute or pmbationary wlunteer. (27 They do not have a medical impaixmene or condition that�conetitutee a predictable or unwananted riek £or the aeeociation. (3) They muet pay annual duee. A member in good etanding ie entitled to peneion benefite ae follove: Aqe and Service Retixement Sligibility - 50 yeare of age, membez of the aeeociation foz at leaet 10 yeare and hae eerved in the Roeeville Volunteez Pize Departmant fox 20 yeare. Monthly Benefit - a member at the full aervice paneion level will zeceive 520.00 a month £or each yeaz of eervice up to a maximum cxedit o£ 30 yeare of eervice. Lump Sum - At the option o£ the mtiree, a lump aum eettlement of peneion benefite may be eelected. The lump eum ehall be 52.00o £or eaeh year of eervice. Punding o£ the Plan, ae aet out in State Statute, requirea [he Aeeoeiation [o alu�ually compute the total amount by adding the amovnt of normal coet plue amortization needed to fully £und the actuarial liability. That amount ie then redueed by the eetimatad etate aid to be received plue an eetimated intereet growth oE 59 on total plan aeeete. Any amount remaining may then be part of a epecial pmperty [ax levy. No othez City funde or con[zibutiona by the employeee aze reguired. oieabilitv Retirement Temporary Dieability - a member who ie temporarily dieabled ehall receive $10 per day, not to exceed 26 weeka. Pesmanent Dieability - a member who ie pezmanently dieabled in the line o£ duty ahall receive the maximum peneion eet out in the monthly benefit and lump eum eection abova. The computation vill aeeume 20 yeaze service unleae the member'e yeaze o£ eerviee are greater. Actual yeara of eervice or 20 yeaze, whiehevez providee the higheat bene£it, will be ueed for compuYation purpoeee. Membez's Death Whi1e Active 8ligibility - Spouee legally married to member at leaet one year before eeparation fmm eervice and residing with member at the time of death. Child - Onder the age o£ 18 and wae born within nine (9) montha aftez death o£ member. aenefits Spouse - Bntitled to l00& of benefite o£ member. child - If a surviving epouee, there ia no additional benefit. If there ie vo aurviving epovae, loot benefit to be ehared proraeing vith other eurviving childzen until the age of majority. Vested De£erced Muet be a member o£ the aeeociation Eoz ten (10) yeare and eerved tventy (20) yeare in the Roeeville Fire �epaztment and aepara[ed before the age of fifty (50). DeEerral ie until a£ter the age o£ Eifty (50) and regular bene£it reguiremente aze maC. A variety o£ eigni£icant actuaria7 aeeumptione are ueed to date�ne the etandardized meaevre oE the pension benefit obligation and theee aeeumptione are eu�arized below: • The preaent value o£ future peneion paymente wae computed by ueing a diacount rate o£ five pezcent. The diecount rate ie equal to [he eatimated long-texm sate of return on current and future inveetmente of the penaion plan. 41