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LITTLE CANADA FIREMEN'S RELIEF ASSOCIATION <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1992 <br />Page 7 of 9 <br />Note 7 PENSION PLAN <br />A. PLAN DESCRIPTION <br />The Little Canada Firemen's Relief Association is the administrator of a single employer Public <br />Employee Retirement System (PERS) established to provide benefits for members of the Little <br />Canada Fire Department. <br />Retired members entitled to benefits, <br />but have not received them 3 <br />Current Members: <br />Fully Vested 9 <br />Partially Vested 15 <br />Nonvested (less than 10 years) 12 <br />Total 39 <br />B. BENEFIT PROVISIONS <br />Twenty Year Service Pension <br />Each member who is at least 50 years of age; has retired from the Little Canada Fire Department, <br />has served at least twenty (20) years of active service with such department before retirement; and, <br />has been a member of the Association in good standing at least 10 years prior to such retirement; <br />shall be entitled to a lump sum service pension in the amount of 52,000 for each year of service <br />but not exceeding the maximum amount per year of service allowed by law for the minimum <br />average amount of available financing per firefighter as prescribed by law. Members with 10 years <br />of service receive partial vesting at 50% of the 20 year rate and 5% added for every one year of <br />service beyond ten years up to 20 years. <br />Disability Benefits <br />After 26 weeks of a disability and upon submission of proof from a reliable physician, that the <br />disability is permanent, and upon approval by the Board of Trustees a member will receive a lump - <br />sum payment equal to his or her accrued service pension. <br />Death Benefit <br />Upon the death of an active or deferred member, the beneficiaries of deceased members, shall be <br />paid a death benefit out of the Special Fund in an amount equivalent to the accrued service pension. <br />State Supplemental Benefits <br />Minnesota Statutes Section 424A.I0 provides for the payment of a supplemental benefit equal to <br />ten percent of a regular lump sum distribution up to a maximum of $1,000. The supplemental <br />benefit is in lieu of a State income tax exclusion for lump sum distributions and will no longer be <br />available if State tax law is modified to exclude lump sum distributions from State income tax. <br />The Little Canada Firemen's Relief Association qualifies for these benefits. <br />Page 39 <br />