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CITY OF LAKE ELMO, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 65 NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued) 6.00% $ 1,875,700 6.00%1,383,574$ 7.00%858,774$ 7.00%585,467$ 8.00%22,259$ 8.00%(69,945)$ 1% Increase in Discount Rate Current Discount Rate 1% Decrease in Discount Rate Sensitivity Analysis Net Pension Liability (Asset) at Different Discount Rates General Employees Fund Police and Fire Fund Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. NOTE 4 DEFINED BENEFIT PENSION PLAN – FIREFIGHTERS RELIEF ASSOCIATION Plan Description Firefighters of the City of Lake Elmo are members of the Lake Elmo Firefighters Relief Association. The Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The plan is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and the Association’s by -laws. As of the most recent valuation date, membership includes 19 active participants and 11 inactive members who are entitled to future benefits. The plan issues a stand-alone financial statement. Benefits Provided Each member who is at least 50 years of age, has retired from the Lake Elmo Fire Department, has served at least 20 years of active service with such department before retirement shall be entitled to a lump sum service pension in the amount of $5,850 for each year of active Fire Department service. Members electing retirement with at least 10 years of service will be eligible for at least 60 percent of this benefit, increasing by 4 percent for each additional year of service up to 20 years. If a member of the Association shall become permanently or totally disabled, the Association shall pay the sum $5,850 for each year the member was an active member of the City of Lake Elmo Fire Department. A death benefit is also available, which is payable to a survivor. Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to 10% of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum distributions and will no longer be available if State tax law is modified to exclude lump sum distributions from State income tax. The Association qualifies for these benefits. Contributions Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from state aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a 10-year period. The significant actuarial assumptions used to compute the municipal support are specified in Minnesota Statutes. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage c alculations).