2001 Comprehensive Annual Financial Report

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CITY OF SOUTH BEND, INDIANA NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS (Continued) The State of Indiana, through the pension relief legislation of ~ 971, provides the City with assis- tance in meeting its contribution requirements for this single employer pension plan. For the years ending December 31, 2001, 2000 and 1999, this State assistance totaled $3,4fi6,084, $1,387,537 and $1,685,540, respectively, The use of the pay-as-you-go method by the City results in significant underfunding of the plan. The Net Pension Obligation (NPO) is considered an obligation of the City and is reflected in the General Long-Term Debt Account Group. D. 1977 Police Officers" and Firefighters' Pension and Disability Fund Plan Descri tion The City contributes to the 1977 Police Officers' and Firefighters' Pension Disability Fund, a cost-sharing multiple-employer defined benefit pension plan administered by the Indiana Public Employees' Retirement Plan PERF}for all police officers and firefighters hired after April 30, 1977. State statute SIC 36-8-8}regulates the operations of the system, including benefits, vesting and requirements for contributions by employers and by employees. Covered employees may retire at age fifty-foe with twenty years of service. An employee with twenty years of service may leave service, but will not receive benefits until reaching age ffty-five. The plan also provides for death and disability benefits. PERF issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for its participants. That report maybe obtained by writing: Public Employees' Retirement Fund Harrison Building, Roam 800 143 West Market Street Indianapolis, IN 46204 Phone 1317} 233-4162 Fundin, Policy and Annual Pension Costs Plan members are required to contribute 6%~ of the first class police officers' and f refighters' salary and the City is tv contribute at an actuarially determined rate. The current rate, which has not changed since the inception of the plan, is 21 % of the f rst class police officers' and f re- fighters'salary. The contribution requirements of plan members and the City are established by the Board of Trustees of PERF. The City's contributions to the plan for the years ending Decem- ber 31, 2001, 2000 and 1999, were $2,540,927, $2,17'1,298 and $1,964,003, respectively, equal to the required contributions for each year. 25