Annual Financial Report 12/31/1987

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Page 12 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) DEFERRED REVENUE Deferred revenue at December 31, 1987 consisted of the following amounts: Uncollected park dedication fees $5,060 Property tax revenue 27,995 Special assessment revenue 2.086.685 Totals $2,119,740 RETIREMENT - MULTIPLE EMPLOYER PERS The City participates in the Public Employees Retirement Fund and the Police and Fire Fund Pension Plans as administered by the Public Employees Retirement Association (PERA) under Minnesota Statutes Chapters 353 and 356, which is a cost sharing multiple - employer Public Employee Retirement System (PERS). This plan covers substantially all employees except those qualifying as temporary or seasonal employees. The City's current year covered payroll and total current year payroll for all employees is $614,429 and $667,969 respectively. A summary of plan eligibility requirements is available at PERA. Such retirement terms are governed by State Statute. 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 retirement program provides benefits to members upon disability and to survivors upon death of eligible members. Retirees have a variety of annuity options available for payment of benefits. The amounts of annuity (retirement benefits) are based on the following formulas: BASIC MEMBERS- 2% of the average salary over the highest five successive years on which deductions were paid for each of the first 10 years and 2 -1/2%n of said "average salary" for the period thereafter. COORDINATED MEMBERS- 1% of the average salary over the highest five successive years on which deductions were paid for each of the first 10 years and 1 -1/2% of said "average salary" for the period thereafter. POLICE AND FIRE MEMBERS- 2 -1/2% of the average salary over the highest five successive years on which deductions were paid for each of the first 25 years and 2% of said "average salary" for the period thereafter.