9.a 2 PERA for firefighters - Scandia Increase 2017Public Employees Retirement Association of Minnesota
60 Empire Drive, Suite 200
St. Paul, MN 55103-2088
Phone: 651-296-7460 ort -800-652-9026
Website: www.=era.org
June 6, 2017
Neil Soltis
City of Scandia
14727 209th Street
Scandia, MN 55073
PERA ID 6542-00
We received your request for a cost analysis to estimate the cost of increasing the benefit level in the statewide volunteer
firefighter retirement plan administered by PERA. Based on the information from December 2016, we have developed this
spreadsheet and a cost analysis for the benefit levels you requested. The results are shown below.
A. Benefit Level (per year of service):
B. Estimated yearly normal cost:
C. Estimated yearly admin expenses:
D. Estimated beginning asset value:
E. Estimated beginning liability:
F. Estimated Deficit Amortization Payment ((E -D)/10):
G. Estimated Total Required Contribution (B+C+F):
H. Estimated Investment Income (D x 6%):
I. Estimated Fire State Aid (2016 Amount):
J. Estimated Municipal Required Contribution (G -H -I):
Funding Ratio
$ 2,500 $ 2,600 $ 2,700 $ 2,800
53,962 56,112 58,283 60,433
780 780 780 780
723,514 723,514 723,514 723,514
560,011 582,018 604,175 626,169
0 0 0 0
54,742 56,892 59,063 61,213
43,411 43,411 43,411 43,411
33,224 33,224 33,224 33,224
129% 124% 120% 116%
Please note that these are estimates only. Should you choose to increase your benefit level in the statewide plan on January 1,
2018, in accordance with Minnesota Statutes Section 353G.11 Subdivision 2 we will recalculate the required municipal
contribution for December 31, 2018, and provide that information to the city soon after we receive the authorization for the
benefit increase. The figures shown above on Line J are estimates of required municipal contributions that would be due on
December 31, 2018 and beyond at the given benefit levels.
The estimate calculations were based on member information that was available as of December 2016. Please review the
membership data and make any corrections to that data. If you return that to me, I will prepare an updated cost estimate for
you to review.
If you have any questions, please do not hesitate to contact me by phone (651-201-2648) or by email at
david.andrewsng n=era.org.
Sincerely,
David Andrews
Accounting Supervisor, PERA
PERA Volunteer Firefighter Retirement Plan Cost Analysis --Estimates Only
Name of Entity: City of Scandia 6542-00
Calculation Date: 06/06/2017
Benefit Increase Date: 01/01/2018
Input:
Status
Active or Deferred
Est. Fire State Aid Amount:
$33,224
Est.Current Value of Assets:
$723,514
Number of Firefighters:
26
Benefit Level:
$2,500
Results:
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
A. Benefit Level (per year of service):
$
2,500
B. Estimated yearly normal cost:
$
53,962
C. Estimated yearly admin expenses:
$
780
D. Estimated beginning asset value:
$
723,514
E. Estimated beginning liability:
$
560,011
F. Estimated Deficit Amortization Pmt ((E -D)/10):
$
0
G. Estimated Total Required Contribution (B+C+F):
$
54,742
H. Estimated Investment Income (D x 6%):
$
43,411
I. Estimated Fire State Aid (State Auditor Estimate):
$
33,224
J. Estimated Municipal Required Contribution (G -H-1):
$
0
Name
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
Fire Dept.
Entry Date
mm/dd/
Separation
Date
If Deferred
Ben Level
at Separation
If Deferred
Leaves of
Absence
months
LThrough 12/31/2017
1 Through 12/31/2018
Normal Cost
(Change in
Liability)
Years of
Service
Accrued
I Liability
Years of
Service
Accrued
I Liability 1
Bauer, John
Active
09/01/2015
Boyd, William
Active
05/01/2000
Egelkrant, Michael A.
Active
06/25/2007
Frank, Michael E
Active
06/01/2012
Gabrick, Joseph
Active
06/01/2016
Hagen, John
Active
06/01/2014
Havener, William
Active
09/01/1988
Hawkinson, Ronald
Active
09/01/1988
Helke, Jason P.
Active
06/28/2003
Hinz, Michael J.
Active
01/01/1993
Loeffler, Travis
Active
06/01/2013
Majeski, Christopher D.
Active
06/25/2007
McCarty, Benjamin
Active
06/01/2014
Mead, David A
Active
06/01/2012
Merrier, Jerome T.
Active
06/01/2001
Meyers, Adam
Active
06/01/2016
Nora, Peter A.
Active
04/01/1983
Patterson, Jesse
Active
06/01/2016
Pearl, Josh
Active
06/01/2013
Rydeen, Allen S
Active
06/25/2007
Rydeen, Eric L
Active
06/01/2012
Sipola, Aaron, M
Active
06/01/2012
Skarja, [an
Active
07/01/2010
Soderlind, Dallas
Active
06/01/2016
Swenson, Scott
Active
07/01/2010
Bieble, Jeffrey N.
Deferred
06/01/2005
Calculation Date 06/06/2017
2
$
1,957
3
$
3,024
$
1,067
18
$
42,032
19
$
45,914
$
3,882
11
$
20,361
12
$
22,943
$
2,582
6
$
9,486
7
$
11,416
$
1,929
2
$
2,802
3
$
4,330
$
1,528
4
$
3,850
5
$
4,961
$
1,111
29
$
72,500
30
$
75,000
$
2,500
29
$
72,500
30
$
75,000
$
2,500
15
$
29,560
16
$
32,604
$
3,044
25
$
54,042
26
$
58,269
$
4,227
5
$
6,652
6
$
8,231
$
1,579
11
$
19,688
12
$
22,184
$
2,496
4
$
5,949
5
$
7,666
$
1,717
6
$
9,486
7
$
11,416
$
1,929
17
$
38,370
18
$
42,032
$
3,662
2
$
2,802
3
$
4,330
$
1,528
35
$
87,500
36
$
90,000
$
2,500
2
$
2,266
3
$
3,502
$
1,236
5
$
6,905
6
$
8,545
$
1,639
11
$
17,068
12
$
19,232
$
2,164
6
$
9,486
7
$
11,416
$
1,929
6
$
6,627
7
$
7,974
$
1,348
8
$
13,461
9
$
15,628
$
2,168
2
$
2,802
3
$
4,330
$
1,528
8
$
13,461
9
$
15,628
$
2,168
05/01/2012 $ 2,500.00 7
$
8,400
7
$
8,400
$
-
0
$
0
$
$
0
$
0
$
$
0
$
0
$
-
$
-
0
$
0
$
$
0
$
0
$
-
$
0
$
0
$
$
$
560,011
$
613,973
$
53,962
PERA Volunteer Firefighter Retirement Plan Cost Analysis --Estimates Only
Name of Entity: City of Scandia 6542-00
Calculation Date: 06/06/2017
Benefit Increase Date: 01/01/2018
Input:
Status
Active or Deferred
Est. Fire State Aid Amount:
$33,224
Est.Current Value of Assets:
$723,514
Number of Firefighters:
26
Benefit Level:
$2,600
Results:
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
A. Benefit Level (per year of service):
$
2,600
B. Estimated yearly normal cost:
$
56,112
C. Estimated yearly admin expenses:
$
780
D. Estimated beginning asset value:
$
723,514
E. Estimated beginning liability:
$
582,018
F. Estimated Deficit Amortization Pmt ((E -D)/10):
$
0
G. Estimated Total Required Contribution (B+C+F):
$
56,892
H. Estimated Investment Income (D x 6%):
$
43,411
I. Estimated Fire State Aid (State Auditor Estimate):
$
33,224
J. Estimated Municipal Required Contribution (G -H-1):
$
0
Name
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
Fire Dept.
Entry Date
mm/dd/
Separation
Date
If Deferred
Ben Level
at Separation
If Deferred
Leaves of
Absence
months
LThrough 12/31/2017
1 Through 12/31/2018
Normal Cost
(Change in
Liability)
Years of
Service
Accrued
I Liability
Years of
Service
Accrued
I Liability 1
Bauer, John
Active
09/01/2015
Boyd, William
Active
05/01/2000
Egelkrant, Michael A.
Active
06/25/2007
Frank, Michael E
Active
06/01/2012
Gabrick, Joseph
Active
06/01/2016
Hagen, John
Active
06/01/2014
Havener, William
Active
09/01/1988
Hawkinson, Ronald
Active
09/01/1988
Helke, Jason P.
Active
06/28/2003
Hinz, Michael J.
Active
01/01/1993
Loeffler, Travis
Active
06/01/2013
Majeski, Christopher D.
Active
06/25/2007
McCarty, Benjamin
Active
06/01/2014
Mead, David A
Active
06/01/2012
Merrier, Jerome T.
Active
06/01/2001
Meyers, Adam
Active
06/01/2016
Nora, Peter A.
Active
04/01/1983
Patterson, Jesse
Active
06/01/2016
Pearl, Josh
Active
06/01/2013
Rydeen, Allen S
Active
06/25/2007
Rydeen, Eric L
Active
06/01/2012
Sipola, Aaron, M
Active
06/01/2012
Skarja, [an
Active
07/01/2010
Soderlind, Dallas
Active
06/01/2016
Swenson, Scott
Active
07/01/2010
Bieble, Jeffrey N.
Deferred
06/01/2005
Calculation Date 06/06/2017
2
$
2,035
3
$
3,145
$
1,110
18
$
43,701
19
$
47,737
$
4,036
11
$
21,170
12
$
23,854
$
2,684
6
$
9,863
7
$
11,869
$
2,006
2
$
2,913
3
$
4,502
$
1,589
4
$
4,003
5
$
5,158
$
1,155
29
$
75,400
30
$
78,000
$
2,600
29
$
75,400
30
$
78,000
$
2,600
15
$
30,748
16
$
33,913
$
3,166
25
$
56,181
26
$
60,576
$
4,395
5
$
6,917
6
$
8,559
$
1,642
11
$
20,481
12
$
23,078
$
2,597
4
$
6,186
5
$
7,971
$
1,785
6
$
9,863
7
$
11,869
$
2,006
17
$
39,893
18
$
43,701
$
3,808
2
$
2,913
3
$
4,502
$
1,589
35
$
91,000
36
$
93,600
$
2,600
2
$
2,357
3
$
3,642
$
1,285
5
$
7,182
6
$
8,887
$
1,705
11
$
17,756
12
$
20,008
$
2,251
6
$
9,863
7
$
11,869
$
2,006
6
$
6,892
7
$
8,293
$
1,401
8
$
13,995
9
$
16,249
$
2,254
2
$
2,913
3
$
4,502
$
1,589
8
$
13,995
9
$
16,249
$
2,254
05/01/2012 $ 2,500.00 7
$
8,400
7
$
8,400
$
-
0
$
0
$
$
0
$
0
$
$
0
$
0
$
-
$
-
0
$
0
$
$
-
0
$
0
$
-
$
0
$
0
$
$
-
$
582,018
$
638,130
$
56,112
PERA Volunteer Firefighter Retirement Plan Cost Analysis --Estimates Only
Name of Entity: City of Scandia 6542-00
Calculation Date: 06/06/2017
Benefit Increase Date: 01/01/2018
Input:
Status
Active or Deferred
Est. Fire State Aid Amount:
$33,224
Est.Current Value of Assets:
$723,514
Number of Firefighters:
26
Benefit Level:
$2,700
Results:
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
A. Benefit Level (per year of service):
$
2,700
B. Estimated yearly normal cost:
$
58,283
C. Estimated yearly admin expenses:
$
780
D. Estimated beginning asset value:
$
723,514
E. Estimated beginning liability:
$
604,175
F. Estimated Deficit Amortization Pmt ((E -D)/10):
$
0
G. Estimated Total Required Contribution (B+C+F):
$
59,063
H. Estimated Investment Income (D x 6%):
$
43,411
I. Estimated Fire State Aid (State Auditor Estimate):
$
33,224
J. Estimated Municipal Required Contribution (G -H-1):
$
0
Name
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
Fire Dept.
Entry Date
mm/dd/
Separation
Date
If Deferred
Ben Level
at Separation
If Deferred
Leaves of
Absence
months
LThrough 12/31/2017
1 Through 12/31/2018
Normal Cost
(Change in
Liability)
Years of
Service
Accrued
I Liability
Years of
Service
Accrued
I Liability 1
Bauer, John
Active
09/01/2015
Boyd, William
Active
05/01/2000
Egelkrant, Michael A.
Active
06/25/2007
Frank, Michael E
Active
06/01/2012
Gabrick, Joseph
Active
06/01/2016
Hagen, John
Active
06/01/2014
Havener, William
Active
09/01/1988
Hawkinson, Ronald
Active
09/01/1988
Helke, Jason P.
Active
06/28/2003
Hinz, Michael J.
Active
01/01/1993
Loeffler, Travis
Active
06/01/2013
Majeski, Christopher D.
Active
06/25/2007
McCarty, Benjamin
Active
06/01/2014
Mead, David A
Active
06/01/2012
Merrier, Jerome T.
Active
06/01/2001
Meyers, Adam
Active
06/01/2016
Nora, Peter A.
Active
04/01/1983
Patterson, Jesse
Active
06/01/2016
Pearl, Josh
Active
06/01/2013
Rydeen, Allen S
Active
06/25/2007
Rydeen, Eric L
Active
06/01/2012
Sipola, Aaron, M
Active
06/01/2012
Skarja, [an
Active
07/01/2010
Soderlind, Dallas
Active
06/01/2016
Swenson, Scott
Active
07/01/2010
Bieble, Jeffrey N.
Deferred
06/01/2005
Calculation 06/06/2017
2
$
2,114
3
$
3,266
$
1,153
18
$
45,400
19
$
49,593
$
4,193
11
$
21,993
12
$
24,782
$
2,789
6
$
10,247
7
$
12,331
$
2,084
2
$
3,026
3
$
4,677
$
1,651
4
$
4,156
5
$
5,355
$
1,199
29
$
78,300
30
$
81,000
$
2,700
29
$
78,300
30
$
81,000
$
2,700
15
$
31,935
16
$
35,223
$
3,288
25
$
58,376
26
$
62,942
$
4,567
5
$
7,182
6
$
8,887
$
1,705
11
$
21,260
12
$
23,955
$
2,696
4
$
6,426
5
$
8,281
$
1,855
6
$
10,247
7
$
12,331
$
2,084
17
$
41,445
18
$
45,400
$
3,956
2
$
3,026
3
$
4,677
$
1,651
35
$
94,500
36
$
97,200
$
2,700
2
$
2,447
3
$
3,782
$
1,335
5
$
7,458
6
$
9,228
$
1,770
11
$
18,430
12
$
20,767
$
2,337
6
$
10,247
7
$
12,331
$
2,084
6
$
7,157
7
$
8,612
$
1,455
8
$
14,539
9
$
16,881
$
2,341
2
$
3,026
3
$
4,677
$
1,651
8
$
14,539
9
$
16,881
$
2,341
05/01/2012 $ 2,500.00 7
$
8,400
7
$
8,400
$
-
0
$
0
$
$
0
$
0
$
$
0
$
0
$
-
$
0
$
0
$
$
0
$
0
$
$
0
$
0
$
$
$
604,175
$
662,458
$
58,283
PERA Volunteer Firefighter Retirement Plan Cost Analysis --Estimates Only
Name of Entity: City of Scandia 6542-00
Calculation Date: 06/06/2017
Benefit Increase Date: 01/01/2018
Input:
Status
Active or Deferred
Est. Fire State Aid Amount:
$33,224
Est.Current Value of Assets:
$723,514
Number of Firefighters:
26
Benefit Level:
$2,800
Results:
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
A. Benefit Level (per year of service):
$
2,800
B. Estimated yearly normal cost:
$
60,433
C. Estimated yearly admin expenses:
$
780
D. Estimated beginning asset value:
$
723,514
E. Estimated beginning liability:
$
626,169
F. Estimated Deficit Amortization Pmt ((E -D)/10):
$
0
G. Estimated Total Required Contribution (B+C+F):
$
61,213
H. Estimated Investment Income (D x 6%):
$
43,411
I. Estimated Fire State Aid (State Auditor Estimate):
$
33,224
J. Estimated Municipal Required Contribution (G -H-1):
$
0
Name
Status
Active or Deferred
Estimated
Birthdate
mm/dd/
Fire Dept.
Entry Date
mm/dd/
Separation
Date
If Deferred
Ben Level
at Separation
If Deferred
Leaves of
Absence
months
LThrough 12/31/2017
1 Through 12/31/2018
Normal Cost
(Change in
Liability)
Years of
Service
Accrued
I Liability
Years of
Service
Accrued
I Liability 1
Bauer, John
Active
09/01/2015
Boyd, William
Active
05/01/2000
Egelkrant, Michael A.
Active
06/25/2007
Frank, Michael E
Active
06/01/2012
Gabrick, Joseph
Active
06/01/2016
Hagen, John
Active
06/01/2014
Havener, William
Active
09/01/1988
Hawkinson, Ronald
Active
09/01/1988
Helke, Jason P.
Active
06/28/2003
Hinz, Michael J.
Active
01/01/1993
Loeffler, Travis
Active
06/01/2013
Majeski, Christopher D.
Active
06/25/2007
McCarty, Benjamin
Active
06/01/2014
Mead, David A
Active
06/01/2012
Merrier, Jerome T.
Active
06/01/2001
Meyers, Adam
Active
06/01/2016
Nora, Peter A.
Active
04/01/1983
Patterson, Jesse
Active
06/01/2016
Pearl, Josh
Active
06/01/2013
Rydeen, Allen S
Active
06/25/2007
Rydeen, Eric L
Active
06/01/2012
Sipola, Aaron, M
Active
06/01/2012
Skarja, [an
Active
07/01/2010
Soderlind, Dallas
Active
06/01/2016
Swenson, Scott
Active
07/01/2010
Bieble, Jeffrey N.
Deferred
06/01/2005
Calculation Date 06/06/2017
2
$
2,192
3
$
3,387
$
1,196
18
$
47,069
19
$
51,416
$
4,347
11
$
22,802
12
$
25,693
$
2,891
6
$
10,623
7
$
12,784
$
2,160
2
$
3,137
3
$
4,849
$
1,711
4
$
4,313
5
$
5,558
$
1,245
29
$
81,200
30
$
84,000
$
2,800
29
$
81,200
30
$
84,000
$
2,800
15
$
33,098
16
$
36,506
$
3,408
25
$
60,516
26
$
65,249
$
4,734
5
$
7,452
6
$
9,221
$
1,769
11
$
22,053
12
$
24,849
$
2,796
4
$
6,663
5
$
8,585
$
1,923
6
$
10,623
7
$
12,784
$
2,160
17
$
42,968
18
$
47,069
$
4,101
2
$
3,137
3
$
4,849
$
1,711
35
$
98,000
36
$
100,800
$
2,800
2
$
2,538
3
$
3,922
$
1,384
5
$
7,734
6
$
9,570
$
1,836
11
$
19,119
12
$
21,543
$
2,424
6
$
10,623
7
$
12,784
$
2,160
6
$
7,422
7
$
8,931
$
1,509
8
$
15,074
9
$
17,501
$
2,427
2
$
3,137
3
$
4,849
$
1,711
8
$
15,074
9
$
17,501
$
2,427
05/01/2012 $ 2,500.00 7
$
8,400
7
$
8,400
$
-
0
$
0
$
$
0
$
0
$
$
0
$
0
$
$
0
$
0
$
$
0
$
0
$
-
$
0
$
0
$
$
$
626,169
$
686,602
$
60,433