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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2023 <br />Note 4:Defined Benefit Pension Plans - Statewide (Continued) <br />Police and Fire Plan Benefits <br />C. Contributions <br />General Employees Fund Contributions <br />Police and Fire Fund Contributions <br />Benefits for Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated <br />basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire <br />Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent after ten years up to 100 percent <br />after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For <br />Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of <br />service equal at least 90. <br />Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. <br />Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective <br />date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but <br />less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. <br />Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be <br />modified by the state Legislature. <br />Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023 <br />General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and <br />statute. <br />Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year <br />the Police and Fire Fund for the years ending December 31, 2023, 2022 and 2021 were $546,390, $460,205 and <br />statute. <br />72 <br />General Employees Fund ContributionsGeneral Employees Fund Contributions <br />Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be <br />modified by the state Legislature. modified by the state Legislature. <br />Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023 Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023 <br />General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and <br />107