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CITY OF RAMSEY Notes to Financial Statements (continued) December 31, 2001 NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.2% of their annual covered salary. The City of Ramsey is required to contribute the following percentages of annual covered payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and 9.3% for PEPFF members. Member and employer contribution rates for Basic and Coordinated members will increase by 0.35% effective January 2002. The City's contributions for the past three years equal to the contractually required contributions for each year as set by state statute are as follows: PERF PERFF Total 2001 $ 82,645 $ 91,413 $ 174,058 2000 $ 64,912 $ 83,250 $ 148,162 1999 $ 59,821 $ 76,750 $ 136,571 NOTE 9 — 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 § 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 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, 2001, was $88,601 compared to a total City payroll of $3,009,258. For financial reporting purposes, the Association's financial statements are not included in the City of Ramsey's financial statements because the Association is not a component unit of the City. The Relief Association issues a publicly available financial report. A copy of the report may be obtained at Ramsey City Hall, 15153 Nowthen Boulevard, Ramsey, Minnesota, 55303. -29-