Annual_Report_1997_001 - Laserfiche WebLink

Home

��TY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS T�F('EMBER 31 1997 N m I Emotover Defined Benetit Pention Plan Volunteer Fire Relief Association - continued Mrmhe*'� De�th W1u�e Active Eligibility - Spouse tegally married to member at least one year before separa[ion from service and residing with member at the time of death. Child - Under the age of 18 and was born within nine (9) monchs after death of inember. Benefits Spouce - Entided to 100� of benefits of inen�ber. Child - If a survivir� spouse, there is no additional benefic If there is no surviving spoace, ]00`�, benefi[ to be shared prorating with other surviving children until the age of majoriry. Veeted Deferted Must be a member of the association for 10 years and served 20 years in d�e Roseville Fire Deparonent and separated before the age oY 50. Defertal is until after the age of 50 and regular benefi[ requirements are met. A vanery of significant actuarial assumptions are used ro de[enuine the s'tandardized measwe of the peasion benefit obligation and these assumptioiu are summarized below: * The present value of future pension payments was computed by using a discount rate of five percent. The discount rate is equal to the estimared tong-tertn rate of return on cwrent and future invesmients of the pension plan. * F�ture pension payments reflect ra post-retirement benefit increases, which is coruistent with the tenus ot the pension agreement. Funding Status ard Progress - The amount shown below as the "pension benetit obligation" is a standardized disclosure measure of d�e presen[ value of pension berefits, adjusted for [he effects of projecred salary increases (if any) and srep-rare ber�fits, estimated to be payable in the futme as a result of service-to-dace. The measure is intended to help users assess the funding sta[us of the association on a going-concem basis, assess progress made in accumulating sufficient asse[s ro pay benefits when due, and make comparisons a�nong employers. The measure is the actuanal present value of crzdi[ed projected benefits and is independent of the funding method uced to deterniine contributions to the Association. Peneion berefit oblisation The to[al pencion benefit obligation as of 7anuary 1, 1996, the latesc actuarial valuation, was b4,764,609. Since the actuarial valuation, the plan experienced an increase in the pension benefit obligacion ot 570,652 and 5374,369 for years ended December 1, 1997 arxi 1996 respectivety. ('nntributions Reauired and �ontributions Made Financial requiremenrs of the relief association are derem�ined on an ac[uarial basis using the en[ry age nom�al actuarial cost me[hod. Nom�al cost is furded on a curren[ basis. The unfunded ac[uanal accr�ed liabiliry is to be funded by December 31, 2016. The Ciry's 43