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03 - Request for Fire Relief Benefit Increase
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05-23-2011 Special Council Meeting
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03 - Request for Fire Relief Benefit Increase
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� <br />t <br />� <br />� <br />PEQUOT LAKES FIREMAN'S RELIEF ASSOCIATION <br />NOTES TO FINANCIAL STATEMENTS <br />� DECEMBER 31, 2008 � <br />NOTE 4 DEFINED BENEFIT PENSION PLAN (CONTINUED) <br />o?o� 8 �4��� .� <br />�E�ort <br />Fundinq Status and Proqress (Continued) <br />The accrued liability was determined as of December 31, 2008, pursuant to state statutes. <br />Significant actuarial assumptions are as follows: <br />Valuation Date <br />Actuarial Cost Method <br />Amortization Method <br />Remaining Amortization Period: <br />Normal Cost <br />Prior Service Cost <br />Asset Valuation Method <br />Actuarial Assumptions <br />Investment Rate of Return <br />Age and Service Retirement Assumed <br />Funding status as of December 31, 2008 is as follows: <br />Pension Benefit Obligations: <br />Retirees and Beneficiaries Currently � <br />Members Not Yet Receiving Benefits <br />Current Members <br />Total Pension Benefit Obligations <br />Net Assets Available for Benefits, at Fa'ir Value <br />at December 31, 2008 <br />Excess Funded Pension Benefit Obligation <br />12/31 <br />Entry Age <br />Level Dollar <br />20 Years <br />10 Years <br />Market Value at 12/31 <br />5% <br />Age 50 <br />$ 95,904 <br />629,184 <br />725,088 <br />734,308 <br />$ (9,220) <br />The Required Supplementary Information provides a ten year history in funding progress on <br />page 18. <br />Contributions Required and Contributions Made <br />Total contributions to the Association in 2008 amounted to $91,856 which consisted of the <br />two percent insurance premium tax from the State of Minnesota of $30,852, state <br />reimbursement for supplemental benefits of $3,000, and a voluntary municipal contribution of <br />$56,004 from the City of Pequot Lakes. The volunteer firefighters were not required to make <br />contributions. <br />(16) <br />
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