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CITY OF ST. ANTHONY ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 1999 ' Note 11 . Defined Benefit Pension Plans - Statewide, continued A. Plan Description, continued For a Coordinated Plan member who retired before July 1 , 1997, the annuity accrual , rate is 1% of average salary for each of the first ten years and 1 .5% for each re- maining year. For Coordinated Plan members who retire on .or after July 1 , 1997, the annuity accrual rates increase by 0.2% to 1 .2% of average salary for each of the first ten years and 1 .7% for each remaining year. Under Method 2, the annuity accrual rate is 2.5% of average salary for Basic Plan members and 1 .5% for Coordinated Plan members who retired before July 1.,. 1997. Annuity accrual rates increase 0.2% for members who retire on or after July 1 , 1997. For PEPFF members, the annuity accrual rate is 2.65% ' for each year of service for members retiring before July 1 , 1997. Effective July 1 , 1997, the annual accrual rate is increased to 3.0%. For all PEPFF members and for PERF members whose annuity is calculated using Method 1 , a full annuity is available ' when age plus years of service equal 90. A reduced retirement annuity is also avail- able to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A ' normal annuity is a lifetime annuity that ceases upon the death of the retiree - no survivor annuity 'is payable.' There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, be- ' cause the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public ' service in order to qualify for a deferred annuity at retirement age: Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are cur- ' rent provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provi ' siohs in effect at the time they last terminated their public service. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. , These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state sta- tutes. PERF Basic Plan members and Coordinated Plan members are required to contri- bute 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The City is required- ' to contribute the following percentages of annual covered payroll ; 11 .43% for Basic Plan PERF members, 5. 18% for Coordinated Plan PERF members, and 11 .40% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31 , 1999, 1998 and 1997 were $64,590, $60,361 and $51 ,392, , respectively. The City's contributions to' the Public Employees Police and Fire Fund for the years ending December 31 , 1999, 1998 and 1997 were $153,545, $144,185, and $133,203, respectively. The City's contributions were equal to the contractually , required contributions for each year as set by state statute. -30- '