1991 CAFR - Laserfiche WebLink

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B pension Benefits CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1991 Note 10. DEFINED CONTRIBUTION PENSION PLAN - FIRE RELIEF ASSOCIATION A. plan Desr_tiptinn Volunteer fire fighters of the City of Ramsey are members of the Ramsey Firefighters' Relief Association. The Association is a single - employer defined contribution pension plan that operates under the provisions of Minnesota State Statutes Sections 69 and 424. 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 of Ramsey are ex- officio members of the Board of Trustees. The City's payroll for members of the Relief Association for the year ended December 31, 1991 was $14,769 compared to a total City payroll of $1,180,123. For financial reporting purposes, the Association's financial statements are not included in the City of Ramsey's general purpose financial statements because the Association is not a component unit of the City because of the lack of oversight responsibility. Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. A fire fighter who completes at least 10 years as an active member of the Municipal Fire Department and has been a member of the Relief Association for at least 10 years, after age 50, is entitled to a full service pension upon retirement. Because this plan is a defined contribution plan, the amount of the retirement benefit is not predetermined, but rather is based on the individual member's allocable portion of contributions made during the participation period. C. Oontrihmtions Regyired and Contributions Made Contributions to the plan include State fire aid pursuant to Minnesota Statutes Chapter 69. In addition, the City is allowed to make voluntary contributions of other public funds pursuant to Minnesota Statutes Chapter 69. The City's contribution to the Relief Association in 1991 was $1,550 which represents the entire amount of State fire aid received by the City on behalf of the Relief Association. This contribution represents 10.5% of the current covered payroll. There were no current year changes in plan provisions. D. Related Party Investments As of December 31, 1991, and for the fiscal year then ended, the Plan held no securities issued by the City or other related parties.