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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree —no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the web at mnpera.org, by writing to PERA at Public Employees' Retirement Association, Retirement System of Minnesota Building, 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103 -2088 or by calling (651) 296 -7460 or (800) 652 -9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the State Legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic and Coordinated Plan members were required to contribute 9.1% and 5.5 %, respectively, of their annual covered salary in 2006. Contribution rates in the Coordinated Plan will increase in 2007 to 5.75 %. PEPFF members were required to contribute 7.0% of their annual covered salary in 2006. That rate will increase to 7.8% in 2007. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.00% for Coordinated Plan PERF members, and 10.5% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 6.25% and 11.7% respectively, effective January 1, 2007. The City's contributions for the past three years ending December 31, which were equal to the contractually required contributions for each year as set by state statute, were as follows: PERF PEPFF Total 2006 $ 185,584 • $ 156,320 $ 341,904 2005 $ 157,590 $ 126,872 $ 284,462 2004 $ 132,297 $ 114,601 $ . 246,898 NOTE 9 -- DEFINED CONTRIBUTION PENSION PLAN -- FIRE RELIEF ASSOCIATION A.. Plan Description Volunteer firefighters of the City are members of the Ramsey Firefighter's Relief Association (the Association). The Association is a single - employer defined contribution pension plan that operates under the provisions of Minnesota Statutes § 69 and 424, as amended. It is governed by a Board of six officers and trustees elected by the members of the Association for three year terms. The chief of the Ramsey Volunteer Fire Department, the Mayor, and the Finance Director of the City are ex- officio members of the Board of Trustees. The City's payroll for members of the Association for the year ended December 31, 2006 was $188,540, compared to a total city payroll of $5,238,822. -44-