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NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) Benefit increases are provided to benefit recipients each January. The post-retirement increase is equal to 50.00 percent of the cost of living adjustment(COLA)announced by the Social Security Administration,with a minimum increase of at least 1.00 percent and a maximum of 1.50 percent. The 2025 annual increase was 1.25 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a prorated increase. 2. PEPFF Benefits Benefits for PEPFF members first hired before July 1,2010,are vested after three years of service. Members hired on or after July 1, 2010, are 50.00 percent vested after five years of service, and 100.00 percent vested after 10 years.After five years,vesting increases by 10.00 percent each full year of service until members are 100.00 percent vested after 10 years. Police and Fire Plan members receive 3.00 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50,and early retirement benefits are reduced by 0.417 percent each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The post-retirement increase is fixed at 1.00 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase,will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months,but less than 36 months,as of the June 30 before the effective date of the increase,will receive a prorated increase. C. Contributions Minnesota Statutes, Chapter 353 and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the State Legislature. 1. GERF Contributions General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.50 percent for General Plan members. The City's contributions to the GERF for the year ended December 31, 2025,were $242,732. The City's contributions were equal to the required contributions as set by state statutes. 2. PEPFF Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2025,and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City's contributions to the PEPFF for the year ended December 31,2025,were $406,384. The City's contributions were equal to the required contributions as set by state statutes. -52-