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CITY OF ORONO <br />NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued) <br />For each fund, there were changes in the actuarial assumptions <br />used in the annual actuarial valuation. Effective for all <br />funds beginning in fiscal year 1989, the pre-retirement <br />interest rate assumption was Increased from 8.0% to 8.535. <br />Additionally, for the PERF and the PEPFF, the amortization <br />target date has been changed to 2020. Shown on the following <br />page are the effects on the pension benefit obligation of <br />these changes in plan benefits and actuarial assumptions. <br />Increase (Decrease) in Pension <br />Benefit Obligation Due To: <br />PERF PEPFF <br />(In Thousands) <br />$127,472 $ 27,851 <br />(84.154)(25,963) <br />$ 43,318 $ 1,888 <br />Changes in plan benefits <br />Changes in actuarial <br />assumptions <br />Net increase in pension <br />benefit obligation <br />D. Ten-Year Historical Trend Information <br />Ten-year historical trend information is presented in PERA’s <br />Comprehensive Annual Financial Report for the year ended June 30, <br />1989. This information is useful in assessing the pension plan's <br />accumulation of sufficient assets to pay pension benefits as they <br />become due. <br />E. Related Party Investment.. <br />As of June 30, 1989, and for the fiscal year then ended, PERA held no <br />securities issued by the City or other related parties. <br />Note 11. DEFERRED COMPENSATION PLANS <br />The > offers its employees deferred compensation plans ertated in <br />accord*>».».e with Internal Revenue Code Section 457. The plans, <br />available to all employees, permit them to defer a portion oi their <br />salary until future years. The deferred compensation is not aval, <br />to employees until termination, retirement, death, or unfores <br />emergency. <br />-48-