Annual_Report_1998_001 - Laserfiche WebLink

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� •' @��: wC • ..I � 1� I : � r �:�0 :9c i �.�: N � 10 - Def�i2�1 Benefi[ Pe cian PI �c - StAtewi le- ont�n ed Pubic Employaes Police aixl Fire Funcl (PEPFF) which are cost-sharing, multiolecmployer retirement plana. T6ese ptazis are establishacl encl edministered in acconlance with Mirousota Statutes, chapters 353 and 356. PERF members belong to either the Coordinetecl Plen or Ihe Basic Plan. Caordi�e[ecl Plen members are coverad by Social Security ancl Basic Plen members are not. All new members must participate in the Coordinutad Plan. All police officers, fire fighters, ancl peace off'icere who quatify for membership by staNte are coverecl by the PEPFF. PERA provides retirement benefits as well as disability benefits to memUers arul benefits to survivors upon death of eligibte members. Benefits are estabGshect by Stete Statute, arul ves[ aker three years of creclited service. The defined retirement benefits are basa[( on a member's highes[ average salary for any five successive years of alloweble service, age, azxl years of creclit at [ermivation af service. Two mefhals are usecl to compute benefi[s for PERF's Coorclinn[ecl arul Basic Plan members. The retiring memoer receives the higher of step-rate benefit accmal fortnula (Methal t) or e level accrual fomiula (Meth«I 2). Uncler Meth«I 1, the aunuity accmal rete for a Basic Plan member who retirecl before July l, 1997 is 2 percen[ of average salury for each of the first 10 years of service ancl 2.5 perceut for each remaining year. The anouity accrual rate for Bxsic members who retire on or after July I, 1997 is 2.2 percent of average salary for each of tbe first 10 years of service and 2.7 percent for each rema'uting yeer. For a Coorclinated Plan membar who retired before July I, t997, the ennuity accrual rate is 1 percent of avernge salary for each of the first 10 yeare aocl 1.5 peroent for each remaining yea-. For Coordina:ed members who retire on or after July 1, 1997, Ihe snnuity accrual retes increese by 0.2 percent to (1.2 percent of average salary for each of the first 10 yexrs ancl 1.7 percent for each remaining year.) Uncler Metk�al 2, the annuify accrual ru[e is 2.5 percent for Basic Plan membere and I.5 percent for Coordinxtecl Plan members who retirecl before Juty 1, 1997.Annuity acerual rates inerease 0.2 percent for members who retire on or aher July 1, 1997. For PEPFF members, th2 ennuity necrwd ra[e is 2.65 perceot for each year of service for members retiring before July l, 1997. Effective Juty 1, 1997, the annual accrual rate is increasecl ta 3.0 percent. For all PEPFF members encl for all PERF members whose azumity is calcuteted using Method 1, e full annuity is available when age plus years of service equal 90. A reclucecl retirement annuity is also avei:able to eligible members seeking early retirement. There are different types of aunuitias available to members upon retiremenL A normal ennuity is a Gfetime amuity that ceases upon the death of the retiree--uo survivor ennuity is payable. There are also verious types of joint ercl survivor ennuity options availeble which will reduce tbe monthly nom�al ennuity emount, becaiue the enciuity is Fwyable over;oint lives. Mevabers may also leave their contributions in t6e funcl upon tertni��ation of public service, in order to qualify for a defercecl emuity et retirement age. Refiircls of contriMe[ions are a�ailable at any time to members who leave Ewblic service, but befere reYiremant 6enefits begin. The benent provisions statecl in the previous paragraphs ef this sution are curnPnt provisians end apply to active plen participants. Vested, tetminetecl employees who are entitled to benefits but are not receiving them yet, are bourui by the provisions iu effect et the time [hey tast teraninetect the,ir public service. PERA issues a publicly available finencial report Niat includes fwincinl statements and requ'vacl supplementary infom�etion for PERF and PEPFF. 17�at report uwy be obtained by writing to PERA, S l4 St. Peter Street N200, St. Paul, Minnesota, 5S 102, or by calling (651) 296-7460 or i-800-652-9026. B. Funcling Policy Minnesora Statutes Chapter 353 sets the rates for employer ancl emplayee contributions. These statu[es are esteblishecl and amenclecl by the s[ete legisleture. T'he City makes annuel conMbctions tc the pension plans zquat [o the atnours[ requirecl by Statr, Stah�tes. PERP