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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) A. Plan Description (continued) There are different types of annuities available to members upon retirement. A normal 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 reduce the monthly normal annuity amount, because the annuity is 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. B. Contributions Required and Contributions Made Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: PERF (Basic and Coordinated Plans) PEPFF Employees Statutory Rates 4.30% 7.90% Employer 4.60% 11.70% Required Rates* 9.58% 17.45% *The recommended rates scheduled above represent the required rates for fiscal year 1994 contributions as reported in the July 1, 1993, actuarial valuation reports. Total contributions made by the City during fiscal year 1994 were: Amounts PERF PEPFF Employees Employer 29,987 $ 36.687 66,674 $ 89,244 31,759 4.23% 4.48% 57,485 7.61% 11.93% The City's contribution for the year ended June 30, 1994, to the PERF represented .014 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1994, represented .106 percent of total contributions required of all participating entities. Percentage of Covered Payroll Employees Employer