1988 CAFR - Laserfiche WebLink

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Note 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued) E. Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's State PERS Comprehensive Annual Financial Report for the year ended June 30, 1988. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. F. Related Party Investments During 1988 and as of June 30, 1988, PERA held no securities issued by the City or other related parties. Note 10. DEFERRED COMPENSATION PLANS CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1988 The City offers its employees three deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans permit employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseen emergency. The amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts are solely the property and rights of the City, subject to the claims of the City's general creditors. Participants' rights under the plans are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the City's belief that they have no liability for losses under the plans but do have the duty of due care that would be required of an ordinary prudent investor. The City also believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The three trustees used by the City are The Minnesota State Deferred Compensation Plan, Kemper Investor Life Insurance Company, and United Resources Insurance Services Incorporated. Assets of the plans are held by the trustees and are reflected in these statements as Agency Funds at market value. Note 11. RESERVED AND DESIGNATED FUND EQUITY Fund balance or retained earnings in various funds has been reserved or designated.