O-1976-1050 - Laserfiche WebLink

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<. . 'j' :Jo'; e e In presenting the Valuation Balance Sheet, assets and liabilities are " shown in the manner customary to pension valuation reporting. Where- ever used, the term "present value" means the dollar value as of the tit valuat~on date (December 31, 1975) of amounts to be received or paid thereafter according to the rates and tables adopted, and discounted at 5% interest. The valuation was made with respect to future contrib- utions receivable on behalf of the firemen from the firemen; city and state and future benefits payable to members and'their beneficiaries as of the valuation date. In calculating liabilities, the provisions of the Firemen's Relief and Retirement Law and schedules of benefits in effect on December 31, 1975, were assumed to govern benefits payable to members and their benefi- ciaries in the Iuture. e In calculating assets, it was assumed that the amount of annual contributions payable on behalf of each member would rem~in $5 annually in the future. Information concerning the membership of the Department was obtained from Ms. Goyen. Item B of the Valuation Balance Sheet shows that the plan has an unfunded liability (excess of liabilities over assets) of $58,555. In order to enhance the security of benefit rights of both the plan par- ticipants now receiving benefits as well as those who will be entitled to receive benefits in the future, we consider it to be important that . you set aside funds for each participant in advance of his date of retirement. For the plan to be fully funded in advance of each partic- ipant's retirement, the unfunded liability described above should be eliminated. - 3 -