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ST. ANTHONY FIREFIGHTERS RELIEF ASSOCIATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 Note 3. Defined Benefit Pension Plan, continued B. Contributions Required and Contributions Made Financial requirements of the Association are determined based upon a formula pre- scribed by State of Minnesota Statutes. The statutes prescribe a set amount of funding per $100 of lump sum benefit payable per year of service. A formal actu- arial valuation is not required by Minnesota Statutes because the pension benefit is a lump sum distribution. The formula used to compute pension contribution re- quirements is substantially the same as that used to determine the standardized measurement of the pension obligation described below. The Association receives fire relief aid from the State of Minnesota, which is Placed in the Special Pension Fund of the Association maintained for the payment of pension benefits. State aid of $20,118 was received by the Association during the year ended December 31, 1995. The City of St. Anthony has no obligation under the plan to make contributions to the Association except for the required state aid. The Association is comprised of volunteers; therefore, there are no payroll expen- ditures and related covered payroll percentage calculations. C. Funding Status and Progress The 'pension benefit obligation' is a standardized disclosure measure of the pre- sent value of pension benefits, estimated to be payable in the future as a result of service completed to date. This measure is intended to help users assess the funding status of the Association on a going- concern basis, assess progress made in accumulating assets to pay benefits when due and make comparisons among employers. The pension benefit obligation as of December 31, 1995 is as follows: Pension Benefit Obligation Retirees with early vested benefits: $67,280 Current members: Fully vested (more than 20 years of service) 185,000 Partially vested (ten or more years of service, but less than 20 years of service) 52,680 Nonvested (less than 10 years of service) 40 580 Net Assets Available for Benefits, at Market Value 349,359 Assets in Excess of Pension Benefit Obligation $3,819 There were no changes in actuarial assumptions or benefit provisions that signifi- cantly affected the determination of the pension benefit obligation as of Decem- ber 31, 1995. WE