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D. Ten -Year Historical Trend Information E. Related Party Transactions CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued) Ten -year historical trend information is presented in PERA's Component Unit Financial Report for the year ended June 30, 1995. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. As of June 30, 1995, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Note 11. DEFINED CONTRIBUTION PENSION PLAN - FIRE RELIEF ASSOCIATION A. Plan Description Volunteer fire fighters of the City of Ramsey are members of the Ramsey Fire Fighter's' 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, 1995 was $35,280 compared to a total City payroll of $1,464,645. B. Pension Benefits Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. In order to be entitled to a pension benefit, a fire fighter must have completed a minimum of 10 years of service with the Department and 10 years membership in the Association and attain the age of 50 years. The fire fighter will then be 60% vested with every year after that at 4% per year until the 20th year when 100% vesting will occur. 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. Fire Fighter's also have the availability of other pensions such as deferred pension, disability pension, death benefits and supplemental death benefits. Each of these other pension is determined based on age and years of service. C. Contributions Required 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 1995 was $30,816 which represents the entire amount of State fire aid received by the City on behalf of the Relief Association. This contribution represents 87% of the current covered payroll. There were no current year changes in plan provisions. —27—