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NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1988 <br />Note 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued) <br />A. Plan Description (continued) <br />There are different types of annuities available to members upon <br />retirement. A normal annuity is a lifetime annuity that ceases upon <br />the death of the retiree. No survivor annuity is payable. There are <br />also various types of joint and survivor annuity options available <br />which will reduce the monthly normal annuity amount because the <br />annuity is payable over joint lives. Members may also leave their <br />contributions in the fund upon termination of public service in order <br />to qualify for a deferred annuity at retirement age. Refunds of <br />contributions are available at any time to members who leave public <br />service, but before retirement benefits begin. <br />B. Contributions Required and Contributions Made <br />Minnesota Statutes Chapter 353 sets the rates for employer and <br />employee contributions. The City makes annual contributions to the <br />pension plans equal to the amount required by State Statutes. <br />Minnesota Statutes Chapter 356.215, Subdivision 4(g) provides the for- <br />mula for determining the date of full funding for the Public <br />Employees' Retirement Fund. This date is 2010. As part of the annual <br />actuarial valuation, PERA's actuary determines the sufficiency of the <br />statutory contribution rates towards meeting the required full funding <br />deadline. The actuary compares the actual contribution to a <br />"required" contribution rate. Current statutory contribution rates <br />and actuarially required contribution rates for the plans are as <br />follows: <br />Basic Plan 8.00% <br />Coordinated Plan 4.00% <br />Total contributions made by the City during fiscal year 1988 were: <br />Public Employees' <br />Retirement Fund <br />Basic Plan <br />CITY OF RAMSEY, MINNESOTA <br />Percentage of <br />Amounts Covered Payroll <br />Employees Employer Employees Employer <br />$37,037 $ 50,557 5.70% 7.80% <br />The City's contribution for the year ended December 31, 1988, repre- <br />sented .11% of total contributions required of all participating <br />entities. <br />Statutory Rates Required <br />Employees Employer Rates <br />10.50% 9.46% <br />4.25% 5.11% <br />