Annual Financial Report 12/31/1987

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CITY OF LINO LAKES, MINNESOTA Page 13 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) RETIREMENT - MULTIPLE EMPLOYER PERS (CONTINUED) PERA also provides death and disability benefits. Pension benefits are funded from member and employee contributions and income from investment of fund assets. Public Employees Retirement Fund members belong to either the Basic or Coordinated Plan. Coordinated members are covered by Social Security and Basic members are not. All new members of the Public Employees Retirement Fund must participate in the Coordinated Plan. Current contribution rates for the funds are as follows: Additional Employee Employer Employer Public Employees Retirement Fund: Basic Plan 8% 8% 2- 1/29'0 Coordinated Plan 4% 4% 1/4% Public Employees Police and Fire Fund 8% 12% Upon termination, regardless of years of service, if not rehired in a PERA covered position, all salary deductions will be refunded, with interest at 5% compounded annually. The City made employer contributions of $45,091 (7.34%) of current covered payroll and employee contributions of $34,372 (5.59%) of current year covered payroll. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the PERA's funding status on a going - concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and employers. The PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations of the PERA as of June 30, 1987, were as follows: Public Employees Public Employees Retirement Fund Police &Fire Fund (in $1.000) (in $1.000) Total pension benefit obligation $2,839,047 $437,229 Net assets available for benefits, at market 2.608.691 549.534 Unfunded/(assets in excess of) pension benefit obligation $230,356 ($112,3051 PERA does not make separate measurements for individual employers. The City of Lino Lakes made employer contributions totaling $40,730 which represent .04% of total contributions of all employers participating in the system ($92,987,000) for the year ended June 30, 1987. The City's contributions were made by the required due dates. Information on investment activity and a listing of specific investments of the PERA can be obtained by writing to the Minnesota State Board of Investment. Ten -year historical trend information is available in the published comprehensive annual financial report of the Public Employees Retirement Association. During 1987 and as of June 30, 1987, PERA held no securities issued by the City or other related parties. The City made employer contributions of $24,423 to the Federal Social Security Retirement Plan.