08-14-1991 Council Agenda - Laserfiche WebLink

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1 1 1 1 1 1 1 1 4 1 1 1 1 1 1 1 LITTLE CANADA FIREMEN'S RELIEF ASSOCIATION NOTES TO FINANCIAL STATEMENTS December 31, 1990 Note 7 PENSION PLAN (Continued) Page 8 of 8 BENEFIT PROVISION CHANGES In early 1990 the Relief Association approved changing the entry date for calculating the pension benefit liability. Effective beginning m 1990, the entry date to be used for calculating the years of service is the voted probation date rather than six months thereafter. The effect of this change is to increase the vesting period by six months per member. This change in benefit provisions increased the pension benefit obligation at December 31, 1990 by $46,560 (from $616,800 to $663,360). This change did not affect the contribution required from the City of Little Canada in 1991. The lump sum service pension increased from $1,600 to $1,800 for each year of service effective September 12, 1990. This change in benefit provisions increased the pension benefit obligation ai December 31, 1990 by $81,668 (from $663,360 to $745,028). This change was adopted after the calculation date for the City of Little Canada contribution requirement for 1991 and therefore does not affect the 1991 contribution amount. HISTORICAL TREND INFORMATION Historical trend information designed to provide information about the Little Canada Firemen's Relief Association's progress made in accumulating sufficient assets to pay benefits when due is presented in Exhibits 2 and 3. Note 8 INTERFUND RECEIVABLES /PAYABLES As of December 31, 1990 there were the following amounts due between funds: General Fund Special Fund Due from Other Funds $470 Due to Other Funds $470 These amounts consist of year end closing entries to the accounting records of the Relief Association, and are planned to be eliminated in 1991. Page 74