2016.07.05 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) 4. Other Information (Continued) C. Pension Plans (Continued) 2. Hugo Firefighter's Relief Association H. Plan Investments (Continued) 2. Asset Allocation The long-term target asset allocation and long-term expected real rate of return is the following: The long-term return on assets has been set based on the plan's target investment allocation along with long-term return expectations by asset class. When there is sufficient historical evidence of market outperformance, historical average returns may be considered. 3. Description of significant investment policy changes during the year The Plan made no significant changes to their investment policy during the year. I. Pension Plan Fiduciary Net Position Detailed information about the Hugo Firefighter's Relief Association plan's fiduciary net position as of December 31, 2015 is available in a separately -issued financial report that includes financial statements and required supplementary information. D. Postemployment Benefits As required by state statute, employees are allowed to participate in the City's group health insurance plan after retirement. However, management has determined that any liability related to postemployment benefits would be immaterial to these financial statements as of December 31, 2015. 65 Long -Term Expected Target Real Rate of Asset Class Allocation Return Cash 7.00% 2.00% Fixed income 27.00% 4.75% Equities 66.00% 8.00% Total 100% 6.75% The long-term return on assets has been set based on the plan's target investment allocation along with long-term return expectations by asset class. When there is sufficient historical evidence of market outperformance, historical average returns may be considered. 3. Description of significant investment policy changes during the year The Plan made no significant changes to their investment policy during the year. I. Pension Plan Fiduciary Net Position Detailed information about the Hugo Firefighter's Relief Association plan's fiduciary net position as of December 31, 2015 is available in a separately -issued financial report that includes financial statements and required supplementary information. D. Postemployment Benefits As required by state statute, employees are allowed to participate in the City's group health insurance plan after retirement. However, management has determined that any liability related to postemployment benefits would be immaterial to these financial statements as of December 31, 2015. 65