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CITY OF SOUTH BEND
<br />NOTES TO FINANCIAL STATEMENTS
<br />(Continued)
<br />c. 1937 Firefi hters' Pension Plan
<br />Plan Description
<br />The government contributes to the 1937 Firefighters' Pension Plan which is a single-
<br />employer defined benefit pension plan. The plan is administered by the local pension
<br />board as authorized by state statute (IC 36-8-7). The plan provides retirement, disability,
<br />and death benefits to plan members and beneficiaries. The plan was established by the
<br />plan administrator, as provided by state statute. The plan administrator does not issue a
<br />publicly available financial report that includes financial statements and required
<br />supplementary information of the plan.
<br />Funding Policv and Annual Pension Cost
<br />The contribution requirements of plan members for the 1937 Firefighters' Pension Plan
<br />are established by state statute. The government's annual pension cost and related
<br />information, as provided by the actuary, is presented in this note.
<br />The use of the pay-as-you-go actuarial cost method by the government results in sig-
<br />nificant underfunding of the plan. The Net Pension Obligation (NPO) is not reflected in
<br />the financial statements of the pension trust funds, but instead is reported as an obliga-
<br />tion of the governmental funds.
<br />Actuarial Information for the Above Plans
<br />Annual required contribution
<br />Interest ion net pension
<br />obligation
<br />Adjustment to annual required
<br />contribution
<br />Annual pension cost
<br />Contributions made
<br />Increase (decrease) in net
<br />pension obligation
<br />Net pension obligation,
<br />beginning of year, as restated
<br />Net pension obligation,
<br />end of year
<br />1925 1937
<br />Police Firefighters'
<br />PERF Pension Pension
<br />$ 691,714 $ 8,210,600 $ 7,576,500
<br />(42,757) 1,284,700 1,154,000
<br />46,499 (1,916,700) (1,669,600)
<br />695,456 7,578,600 7,060,900
<br />754,755 5,292,559 4,807,902
<br />(59,299) 2,286,041 2,252,998
<br />(589,752) 19,033,247 17,096,896
<br />$ (649,051) $ 21,319,288 $ 19,349,894
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