1989 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1989 Note 9. DEFINED BENEFIT PENSION PLANS -STATEWIDE (continued) for each remaining year. For a Coordinated member, the annuity accrual rate is 1% of the average salary for each of the first ten years and 1.5% for each remuic~ing year. Using Method 2, the annuity accrual rate is 2.5% of the average salary for Basic members and 1.5% for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5% for each of the first 25 years and 2% for each remaining year. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon retirement. 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, Subdivision 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: Statutory Rates Required Emoloyees Employers Rates PERF (Basic and Coordinated Plans) PEPFF 4.72% 4.67% 9.42% 8.00% 12.00% 16.69% -3~-