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TA CITY OF RA,MSEY, MINNESO NOTES TO FINANCIAL STATEMENTS December 31,1996 Note 10. DEFINED BENEFIT PENSION PLANS -STATEWIDE (continued) ' A. Plan Description (~ontinuedl PERA issues a publicly available financial report that includes fmancial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, ' St. Paul, Minnesota 55102 or by calling (612) 296-7460 or 1-800-652-9026. B. Fundine Policv ' 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 8.23% and 4.23%, respectively, of their annual covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The City of Ramsey is required to contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF members, 4.48% for Coordinated ' Plan PERF members, and 11.40% for PEPFF members. The City's contributions for the years ended December 31, 1996, 1995, and 1994 were $102,868, $93,091, and $84,744, respectively, equal to the contractually required contributions for each year as set by state statute. 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 asingle-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, 1996 was $46,909 compared to a total City payroll of $1,629,050. ' 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. ~~ -26-