05 Audit for FY01-02 - Laserfiche WebLink

Home Browse Search

City of Paris, Texas Notes to Financial Statements (Continued) September 30, 2002 Other Information (Continued) G. Employee Retirement Systems and Plans (Continued) 2. Firefighter's Relief and Retirement Fund (Continued) Plan Description (Continued) alone financial statement. A copy of the financial statement may be obtained from the Board of Trustees. Governing state law requires public retirement systems to hire an actuary to make a valuation at least once every three years of the assets and liabilities of the system and to determine if the assumptions and methods are reasonable. Eligibility All active firefighters of the City of Paris, Texas, are covered by the fund. The City of Paris contributes ten percent of each member's total pay (including regular, longevity, and overtime pay but excluding lump sum distributions for unused sick leave or vacation). Fund members contribute to the fund at a rate of nine percent of pay. Employee contributions are not "picked up" under Section 414(h) (2) of the Internal Revenue Code. Fund members receive credit for service for the period during which they pay into and keep on deposit in the fund, the contributions required by the fund. The fund was amended effective September 1, 1999. The City's annual required contribution to the plan for fiscal year 2002 was based on a payroll of $2,234,663 and amounted to $223,467. Covered employees made contributions of $201,120. The Plan covers 26 retirees and beneficiaries, 10 fully vested active employees, and 45 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 82, 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 $80 multiplied by his/her years of service at retirement. 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 his/her 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. 36