Annual Financial Report 12/31/1985

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) COMPENSATED ABSENCES The City does not record the liability for vacation and sick pay earned by employees as such benefits accrue, but rather charges expenditures when employees take vacations or use sick time. Generally accepted accounting prin- ciples do not require the accrual of a liability for vacation or sick pay in the City's Funds because no carry over was approved by Council. Vacation pay accumulation at December 31, 1985 totaled approximately $2,800. Sick pay accu- mulated at December 31, 1985 totaled approximately $78,200. RETIREMENT The City of Lino Lakes participates in the Public Employees Retirement Association defined benefit plans as follows: Police Employees Other City Employees Totals Public Employees Retirement Fund Police and Fire Fund 10 16 16 10 The City had 26 employees covered by PERA and 37 total employees. The Public Employees Retirement Fund and the Police and Fire Fund are defined benefit pension plans administered by the Public Employees Retirement Association in accordance with Minnesota Statutes, Chapters 353 and 356. The Public Employees Retirement Fund's membership consists of employees of counties, cities, and schools in non - certified positions throughout the State of Minnesota. The membership of the Public Employees Police and Fire Fund con- sists of police officers and fire fighters employed by counties and cities throughout the State of Minnesota. In general, the association provides defined retirement benefits based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. In addition, the retire- ment program provides benefits to members upon disability and to survivors upon death of eligible members.