07-13-1992 Council Packet - Laserfiche WebLink

Home Browse Search

m rmuMmt'V. " >-'X ' , v^'-'' mm r'i.-¥ W^% ii' 0r iSfeW, CITY OF ORONO. MINNESOTA Notes to Financial Statements (continued) December 31. 1991 NOTE S - FLEXIBLE BENEHT PLAN Infective January 1, 1991, the City established the City of Orono Flexible Benefit Plan. The Plan is a *cafaieria plan* under Section 125 of the Internal Revenue Code. All employees who meet the eligibility requirements may participate in the Plan. To be eligible an employee must be at least 20 years of age and be an enq>loyee who is regularly scheduled to work more than 20 hours per week. Bigible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to ^ Plan for health care and dependent care be nefits Payments are made from the Plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. All assets of the Plan are held by the City. The Plan is administered by an independent contract administrator for child care and medical expense reimbursements, and by the City for health insurance pTWihims. The Plan is included in the financial statements as an Expendable Trust Fund. All Plan propert y and income attributable to that property is solely the property of the City, subject to thedaime of the City's general creditors Participants’ rights under the Plan are equal to those of general craditoriof bte CHy in an amount equal to the eligible health care and dependent care expenses incurred by the paiticipaitts. The City believes that it is unlikely that it will use the assets to satisfy the claims of gMCral credtors in the future. NOTE V - DEHNED BENERT PENSION PLANS • STATEWIDE A. Plan DcKriptkMi All ftill*liaie and certain part-time employees of the City of Orono are covered by defined benefit pension plliS administered by the Public Employees' Retirement Association of Minnesota (PERA) PERA •dministert the Public Employees' Retirement fund (PERF) and the Public Employe^' Police and Fire Fuad (PEPFF) which are cost-sharing multiple-employer retirement plans. PERF members belong to •kher Bie COordiamed Plan or die Basic Man. Cmirdinated members are covered by Social Security and toic BMHBbirs art not. All new members must participate in the Co^>rdmated Plan All police officers, fife fl^Ners, and peace ofRcen who qualify for membership by Statute are covered by the PEPFF. The p^frotl for employees covered by PERF and PEPFF for the year ended December 31, 1991 was 1103.033 and $618,262, respectively, the City ’s total payroll was $1,521,522 PERA piovkim radremcm benefits as well as disability benefits to members, and benefits to mrvivors ^KMl dcmb of eligible mmnben. Benefits are mtidilished by State Statute md vest after three years of CTldited twice. The defined retirmnent benefits arc based on a member’s average sdary for any five mcceilivf years of allowable service, age. and years of credit m termination of ser. tee. Two meth are uaed to compute benefits for Coordinated and Basic members *»i. I I I i I I I I