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<br />8e <br />Page 65 <br /> <br /> Public Safety Miscellaneous <br />Benefit vesting schedule 5 years service 5 years service <br />Benefit payments monthly for life monthly for life <br />Retirement age 50 50 <br />Monthly benefits, as a % of annual salary 3% 2.0-2.7% <br />Required employee contribution rates 9% 8% <br /> <br />Employer contributions are determined by PERS as a percentage of covered payroll <br />and represent the actuarially required contribution. The employer contributions for the past <br />three years are: <br /> <br />Year Police Safety Fire Safety Miscellaneous <br />2004 11.737O~ 25.444% 3.981 % <br />2005 34.048% 36.963% 7.102% <br />2006 36.564% 36.564% 11.215% <br /> <br />PERS determines contribution requirements using a modification of the Entry Age <br />Normal Method. Under this method, the City's total normal benefit cost for each employee from <br />date of hire to date of retirement is expressed as a level percentage of the related total payroll <br />cost. Normal benefit cost under this method is the level amount the employer must pay <br />annually to fund an employee's projected retirement benefit. This level percentage of payroll <br />method is used to amortize any unfunded actuarial liabilities. <br /> <br />PERS adjusts the market value of the Plan's assets with an asset smoothing technique <br />to produce an actuarial value of such assets. . An investment rate of return of 7.75% is <br />assumed for the Plan's assets. Inflation is assumed to increase at an annual rate of 3%. Annual <br />salary increases are assumed to vary by duration of service. Changes in liability due to plan <br />amendments, changes in actuarial assumptions, or changes in actuarial methods are amortized <br />as a level percentage of payroll. The Plans' actuarial value of assets (which differs from market <br />value of assets) and funding progress over the most recent three years available are set forth at <br />their actuarial valuation date of June 30: <br /> <br />Public Safety Plan: <br /> <br />, A,Q.tuarial <br /> <br />Value of <br />Valuation Date Assets <br />2003 l16K113) 46 <br />2004 115,149,302 <br />2005 125,860,464 <br /> <br />Entry Age <br />Accrued <br />$138,666,834 <br />151,322,999 <br />164,452,675 <br /> <br />Unfunded <br />Unfunded (Overfunded) <br />(Overfunded) Funded Annual Liability as% of <br />Liability _______~atio ____,.g2Y.~~~<;I.____~rofl <br />$30,553,088 78.0% $15,602,299 195.8% <br />36,173,697 76.1% 16,137,288 224.2% <br />38,592,211 76.5% 16,776,921 230.0% <br /> <br />A-3 <br />