Agenda - Council Work Session - 06/28/2016

Home

NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE (CONTINUED) G. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the PERA website at www.mnpera.org. NOTE 9—DEFINED CONTRIBUTION PLAN—STATE-WIDE All City Council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings,less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary.Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund.For administering the plan,PERA receives 2%of employer contributions and twenty-five hundredths of 1% (.0025)of the assets in each member's account annually. Total contributions made by the City of Ramsey for the last three fiscal years were: Contribution Percentage of Covered Required Rate for Amount Payroll Employees and For the Year Ended: Employee Employer Employee Employer Employ December 31,2015 $600 $600 5% 5% 5% December 31,2014 $900 $900 5% 5% 5% December 31,2013 $900 $900 5% 5% 5% NOTE 10—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, 2015 was $191,284, compared to a total city payroll of$6,216,385. For financial reporting purposes, the Association's financial statements are not included in the City's financial statements because it is not a component unit of the City. The Association issues a publicly available financial report. A copy of the report may be obtained at Ramsey Municipal Center, 7550 Sunwood Drive Northwest,Ramsey,Minnesota 55303. 85