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VADNAIS LAKE AREA WATER <br />MANAGEMENT ORGANIZATION <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2003 <br />PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members <br />are covered by Social Security and Basic Plan members are not. All new members must participate in <br />the Coordinated Plan. <br />PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors <br />upon death of eligible members. Benefits are established by State Statute, and vest after three years of <br />credited service. The defined retirement benefits are based on a member's highest average salary for <br />any five successive years of allowable service, age, and years of credit at termination of service. <br />The benefit provisions stated in the previous paragraphs of this section are current provisions and <br />apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not <br />receiving them yet are bound by the provisions in effect at the time they last terminated their public <br />service. <br />PERA issues a publicly available financial report that includes financial statements and required <br />supplementary information for PERF. That report may be obtained by writing to PERA, 60 Empire <br />Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652-9026. <br />B. FUNDING POLICY <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These <br />statutes are established and amended by the state legislature. The Organisation makes annual <br />contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan <br />members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of <br />their annual covered salary. The Organization is required to contribute the following percentages of <br />annual covered payroll: 11.78% for Basic Plan PERF members and 5.53% for Coordinated Plan <br />PERF members. The Organization's contributions for the years ending December 30, 2003, 2002 and <br />2001 were $2,433, $2,056 and $1,814, respectively. <br />Note 6 EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS <br />For the year ended December 31, 2003, there were excess expenditures over appropriations in the General Fund <br />as follows: <br />Over <br />Budget Actual Budget <br />General fund $66,640 $78,431 $11,791 <br />17 <br />