C.A.F.R., FY 2005-06 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2006 V. Other Information (Continued) I. Employee Retirement Systems and Plans (Continued) 2. Firefighters' Relief and Retirement Fund (Continued) Eligibility (Continued) period during which they pay into and keep on deposit in the fund, the contributions required by the fund. The fund was amended effective January 1, 2004. The City's annual required contribution to the plan for fiscal year 2006 was based on a payroll of $1,927,243 and amounted to $251,073. Covered employees made contributions of $192,724. The Plan covers 30 retirees and beneficiaries, 29 fully vested active employees, and 25 nonvested active employees. Service Retirement Disability and Death Benefits A member is eligible for service retirement on either (a) the date that the member has both attained age 55 and completed 20 years of service or (b) the date as of which the sum of the member's age and years of service first equals 80 provided the member has completed 20 years of service. A member who retires under the service retirement provisions of the fund will receive a monthly benefit equal to the greater of $89.50 multiplied by his/her years of service at retirement or another formula using other factors. Service retirement benefits are payable for the member's lifetime. In the event the member's death precedes that of his/her spouse, two-thirds of the member's pension will be continued to the spouse for hislher lifetime. An active member who becomes disabled will receive a monthly disability benefit. If a member dies while in active service, his/her widow( er) will receive an immediate monthly benefit, payable for his/her lifetime. Annual Pension Cost The actuarial valuation date used to determine the Annual Required Contribution for the year ended September 30, 2006, and the most current available information required for disclosure under Paragraph 22 of GASB Statement No. 27 is January 1, 2005. The actuarial cost method used in the January I, 2005, valuation is the entry age normal actuarial cost method. This method is also referred to as the entry age actuarial cost method under the terminology developed by the Joint Committee on Pension Terminology. The valuation measures the actuarial balance between the present value of future benefits and the sum of (i) the present value of future contributions and (ii) the actuarial value of assets. The plan is not subject to the minimum funding requirements of Internal Revenue Code Section 412. There has been no change in the actuarial cost method since the last actuarial valuation. 51