Agenda Packets - 2024/05/13 - Laserfiche WebLink

Home Browse Search

NOTE 9 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) H. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed on the preceding page, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (6.00%) (7.00%) (8.00%) The City's proportionate share of the GERF net pension liability $ 3,304,095 $ 1,867,690 $ 686,194 The City's proportionate share of the PEPFF net pension liability $ 5,502,663 $ 2,773,354 $ 529,495 I. 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. Q1111I*Elm 71MWQ10ZK1R11Y91.118Y113en9Kiel Councilmembers of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple -employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5.00 percent of their salary, which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees, contributions must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, the PERA receives 2.00 percent of employer contributions and 25 hundredths of 1.00 percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City during fiscal year 2023 were: Required Rate Contribution Amount Percentage of Covered Payroll for Employees Employee Employer Employee Employer and Employers $ 697 $ 697 5.00% 5.00% 5.00% &*2