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Public Employees Retirement Association of Minnesota <br />60 Empire Drive, Suite 200 <br />St. Paul, MN 55103-2088 <br />Phone: 651-296-7460 or 1-800-652-9026 <br />Website: www.mnpera.org <br />September 16, 2014 <br />Al Rolek <br />City of Lino Lakes <br />600 Town Center Pkwy <br />Circle Pines MN 55014 <br />Unit No. 5906-00 <br />We received your request for a cost analysis to estimate the cost of joining the statewide volunteer firefighter <br />retirement plan administered by PERA. Based on the information you provided to us, we have developed this <br />spreadsheet and a cost analysis for the benefit levels you requested. The results are shown below. <br />Per you phone call request, I have prepared the analysis assuming the $5000 benefit level for 30 firefighters <br />that join the PERA Statewide plan on January 1, 2015. <br />Payments to Plan Begin 12/31/2016 12/31/2015 <br />A. Benefit Level (per year of service): $5,000 $5,000 <br />B. Estimated yearly normal cost: $91,686 $86,496 <br />C. Estimated yearly admin expenses: $900 $900 <br />D. Estimated beginning asset value: $0 $0 <br />E. Estimated beginning liability: $168,096 $81,600 <br />F. Estimated Deficit Amortization Payment ((E -D)/10): $16,810 $8,160 <br />G. Estimated Total Required Contribution (B+C+F): $109,395 $95,556 <br />H. Estimated Investment Income (D x 6%): $0 $0 <br />I. Estimated Fire State Aid (2012 Amount): $0 $0 <br />J. Estimated Municipal Required Contribution (G -H-1): $109,395 $95,556 <br />Please note that these are estimates only. Should you choose to join the statewide plan on January 1, 2015, the <br />required municipal contribution you would pay in 2015 is $0. However, if the payments start in December <br />2015, the annual cost would decrease as shown in the second column above. <br />As a reminder, no benefits are payable until a fire fighter is vested in 5 years. At this point, if you have any <br />questions, please feel free to give me a call at 651-201-2681. If I am not available, please contact Dave <br />DeJonge at 651-201-2641 and he would be happy to answer your questions. <br />In accordance with Minnesota Statute 353G.05, if you wish to join the statewide plan, we must receive a signed <br />resolution from the governing body of your municipality within 120 days of the receipt of this cost analysis. A <br />sample resolution. can be found on our website, www.mnpera.org, under the Employers tab. <br />David Andrews <br />Accounting Supervisor <br />