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CITY OF ORONO. MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31, 1995 <br />NOTE S - DEHNTD BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) <br />B. Contributions Required and Contributions Made <br />Minnesota Sututes Chapter 353 sets the rates for employer and employee contributions. The City makes <br />annual contributions to the pension plans equal to the amount required by sute statutes. According to <br />Minnesota Statutes Chapter 356.215, Subd. 4(g). the date of full funding required for the PERF and the <br />PEPFF is July I, 2020. As part of the annual actuarial valuation, PERA’s actuary determines the <br />sufficiency of the statutory contribution rates towards meeting the required full funding deadline, "nte <br />actuary compares the actual contribution rate to a "required ” contribution rate. The required contribution <br />rate consists of (a) normal costs based on entry age normal cost methods, (b) a supplemenul contribution <br />for amortizing any unfunded acmarial accrued liability by the date required for full funding, and (c) an <br />allowance for administrative expenses. Current combined statutory contribution rates and actuarially <br />required contribution rates for the plans are as follows: <br />Statutory Rates <br />Employees Employer <br />Required <br />Rates * <br />PERF (Basic and <br />Coordinated Plans) <br />PEPFF <br />4.319? <br />7.60% <br />4.60% <br />11.70% <br />9.76% <br />19.00% <br />• Xhe recommended rates scheduled above represent the required rates for fiscal year 1995 contributions <br />as reported in the July 1. 1994 actuarial valuation reports. <br />Total contributions made by the City during fiscal year 1995 were: <br />Amounts <br />Percentage of <br />Covered Payroll <br />Employees Employer Employees Employer <br />PERF <br />PEPFF <br />$ 39,735 $ 42,084 <br />56.908 85.363 <br />4.23% <br />7.60% <br />4.48 % <br />11.40% <br />$ 96,643 $ 127.447 <br />The City's contribution for the year ended December 31. 1995 to the PERF represented 0.03% of total <br />employer contributions required of all participating entities. For the PEPFF, contributions for the year <br />ended December 31. 1995 represented 0.25% of total employer contributions required of all participating <br />entities. <br />-47-