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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Note 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) C. Funding Status and Progress (Continued) Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1993, are shown below: Total pension benefit obligation $ 5,163,766 $ 932,333 Net assets available for benefits at cost (market values for PERF = $4,515,052; PEPFF = $1,173,312) 4,304,163 1,090,857 Unfunded (assets in excess of) pension benefit obligation $ 859,603 $ (158,524) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of June 30, 1993. 2. Changes in Benefit Provisions Three bills enacted during the 1993 legislative session improved benefits for many members without a material effect on the pension benefit obligation in the PERF or the PEPFF. The early retirement incentive bill permitted a public employer to offer PERA's Basic and Coordinated members an increase of one- fourth percent (.25%) in the formula multiplier for each year of service, up to the first 30 years, or health insurance coverage to age 65. Also, the survivor protection bill provided benefits to either a surviving spouse or children of PERF Coordinated Plan members who die before age 50. Lastly, the Police and Fire benefit increase bill, which became effective July 1, 1993, permanently increased the PEPFF formula multiplier from 2.5 percent to 2.65 percent of an individual's average salary over the five highest consecutive years of earnings. D. Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's ,Component Unit Financial Report for the year ended June 30, 1993. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. -28- PERF PEPFF (In Thousands)