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<br />~
<br />
<br />.
<br />
<br />Year
<br />
<br />1971
<br />1972
<br />1973
<br />1974
<br />1975
<br />1976
<br />1977
<br />1978
<br />1979
<br />1980
<br />1981
<br />1982
<br />1983
<br />.984
<br />985
<br />
<br />e
<br />
<br />.
<br />
<br /> EXHIBIT 4
<br /> LA PORTE FIREMEN'S RELIEF AND RETIREMENT FUND
<br /> eash Flow Model - Proposed Plan
<br /> Fund at eontributions Payments Fund 'at
<br />Beginning by City, Investment from End of
<br /> of Year Firemen & State Income Fund Year
<br />$ 0 $ 3,941 $ 0 $ 3,941 $ 0
<br /> 0 3,924 0 3,924 0
<br /> 0 4,024 0 4,024 0
<br /> 0 4,179 0 4,141 38
<br /> 38 3,878 0 3,916 0
<br /> 0 13,224 107 8,930 4,401
<br /> 4,401 13,224 294 10,282 7,637
<br /> 7,637 13,224 450 10,507 10,804
<br /> 10,804 13,224 606 10,592 14,042
<br /> 14,042 13,224 771 10,468 17,569
<br /> 17,569 13,224 955 10,154 21,594
<br /> 21,594 13,224 1,159 10,049 25,928
<br /> 25,928 13,224 1,373 10,136 30,389
<br /> 30,389 13,224 1,601 9,932 35,282
<br /> 35,282 13,224 1,838 10,269 40,075
<br />
<br />I. Data for years 1971 through 1975 based on the annual reports for those
<br />years.
<br />
<br />II. Assumptions for years 1976 through 1985:
<br />
<br />.
<br />
<br />eontributions - by the eity, a level amount of $12,865 per year and
<br />by the State, a level amount of $359 per year.
<br />
<br />Investment Income - is 5% per year on the average fund balance in
<br />each year.
<br />
<br />Mortality Rate - is 3% per year.
<br />
<br />Retirement Benefits - granted at age first eligible based on a
<br />service retirement benefit of $50 per month. Previously retired
<br />firemen are granted an increase from $25 per month to $50 per month
<br />and widows are granted an increase from $16.66 to $50 per month.
<br />
<br />- 11 -
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