This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp
May, 2009
VAN IWAARDEN ASSOCIATES 840 LUMBER EXCHANGE TEN SOUTH Fwrn STREET MINNEAJ'OLlS MN 55402-1032611.596.5960 j: 612.596.5999 WWW.VANIWAARDEN.COM
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Table of Contents
Introduction
Introduction and actuarial celiification , , ..
Sumnlary of results , , , ,., .
Valuation data - plan assets and members
Actuarial value of assets ,
SUlnmary ofmelnber data , , , , ,
SUlllmary of changes in Inembership., ,' .
Valuation results - actuarial values
Actuarial valuer> used to detenlline contribution \ ~ , ; ..
Changes in the unfunded actuarial accrued liability. , , .
Accounting basis results - GASB disclosure b~for11lation
Statelnent ofplan net assets : ' , , ,
Statement of changes in plan net assets : , , ..
Schedule of funding progress , , , , , ..
Schedule of employer contributions ' .
Historical tables
Historical unit values , .
Historical funding ratio schedule , , , ,..
History of actuarially determined employer contributions , , , , , ..
Comparative schedule of active members ..
Comparative schedule of inactive members , ..
Sllpplementary information
Actuarial assulnptions and 111ethods, , , ..
Sunlmary of plan provisions , , , , , .
1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Introduction
Purpose
This report presents the results ofthe December 31, 2008 valuation for the Minneapolis PoliceReliefAssociation. Its primary purposes are:
to detern1ine the funded status as of December 31, 2008,• to determine the normal cost and the required amOliization payment, and
to present infol1nation required to be disclosed under Govemmental Accounting StandardsBoard Statement No. 25 (GASB 25) as of December 31, 2008.
Sources ofdata
The ReliefAssociation supplied December 31, 2008 data for all active and inactive members,including unit values and historical salary increase rates. The Relief Association has also provided.asset infonuation regarding the special fund including historical rates ofreturn. We have relied onthis data in preparing this report
Changes from the previous valuation
The prior actuarial valuation of the plan was prepared as ofDecember 3f, 2007. The actuarialassumptions and methods used to prepare this repOli are the same as those used in the 2007report, except for the mo·rtality assumption. We have updated the mortality assumption ii-om theUP-1984 MOliality Table set forward 2 years for males and set back 3 years for females to the1983 GAM Mortality Table set back 2 years for males and set forward 1 year for females. Thismortality table change has been approved by the Legislative Commission on Pensions andRetirement (LCPR). .
The most recent union contract was through October 14,2008. A unit value of96.64 becameeffective January 1, 2008, and remains in effect as of the valuation date for this report - December31,2008.
For purposes ofthis valuation, we have used the 96.64 unit value as of the valuation date, withprojected annual increases of4% per year - the statutory salary increase assumption. For theDecember 31, 2007 valuation, we used the established unit value of 91.74. We projected this rateat 4% per year as required by statute, so that the estimated unit value as of December 31, 2008would have been 95.41 - compared to the actual rate of96.64 that has now been established.
Since the actual rate is more than what was projected in the previous year, and therefore benefitcosts are more than expected, the plan liabilities have experienced an actuarial"loss" of $5.5million (see page 8, item A.3.b.)
2MINNEAPOLIS POLICE RELIEF ASSOCIATION
December 31, 2008 Actuarial Valuation
Introduction (continued)
Summary ofvaluation results
As of December 31, 2008, the funded status of the plan (actuarial value of assets divided byactuarial accrued liabilities) is 64.1 % (see page 7). This is a decrease from last year's funded ratioof 87.9%. The drop in funded status is due to the change in mortality table, the actuarial lossdescribed above, and to a decrease in the actuarial value of assets (see pages 4 and 8). The-29.8% return on the market value of assets produced a -5.5% return on the actuarial value thatwas less than the 6% statutory assumption. On a market value basis, the funded status hasdecreased ii'om 90.8% to 49.2%.
Because the five~yea,r average rate of return on investments as of the valuation date does notexceed the five-year average salary increase rate, a "13th Check" will not bepayable in 2009.
[1ctuarial certification
We certifY that the actuarial valuation has been prepared in accordance with Minnesota Statutes§§356.20-.23, §423B, and §69.77 as they relate: to police department reliefassoci:f;ltions in citiesof the first class in general and the Minneap6'lis Police Relief Association in particular. '
Mark D. Meyer, FSA, MAAAConsulting Actuary
Peter 1. Cullen, EAConsulting Actuary
December 31, 2007 December 31, 2008
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31,2008 Actuarial Valuation
Summary of Results
A. Plan participant data1. Number ofparticipants
a. Active employeesb. Terminated vested employeesc .. Retireesd. Disabilitye. Surviving spousesf. Surviving childreng. Total
14o
627o
233
12874
3
14o
607o
239
12860
B. Normal costs1. Total nonnal cost
a. Amountb. Percentage of active payroll
2. Employer nonnal costa. Amountb. Percentage of active payroll
C. Amortization payments1. Ui1funded actuarial accrued liability2. Amortization payment
2007 Plan Year
$187,40315.81 %
92,5587.81%
$51,814,9095,830',498
2008 Plan Year
$219,89017.61%
119,9799.61%
$182,225,69821,797,105
D. Value ofplan assets1. Market value2. Actuarial value (for calculating contributions)
December 31, 2007 December 31, 2008$389,025,966 $249,250,415
376,465,987 324,723,051
E. Bene.fit liabilities1. Present value of future benefits2. Actuarial accrued liability
F. Funded status1. Market value of assets as a % of liabilities2. Actuarial value of assets as a % of liabilities
$428,468,299428,280,896
90.8%87.9%
$507,168,639506,948,749
49.2%64.1%
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31,2008 Actuarial Valuation
4
Funding Basis
Actuarial Value of Assets
A. Unrealized ggjH
Year EndingDecember 31 :
MarketValue
BookValue
Unrealized Gain(Market - Book)
2005200620072008
366,406,914390,831,714389,025,966249,250,215
331,038,035340,010,710330,008,751307,540,360
35,368,87950,821,00459,017,215
(58,290,145)
B. Preliminary actuarial value ofassets1. Book value of assels2. Average unrealized gain for previous three years3. Preliminary actuarial value
December 31, 2007$330,008,751
1R,402,366378,411,117
December 31, 2008$307,540,360
17,182,691324,723,051
.·Asset Return22.7%9.6%5.9%13.7%7.2%
-29.8%
Salary Increase3.196%3.525%3.082%1.932%2.245%7.635%
C. Excess investment income1. Salary increases and time-weighted rate of return on assets
Year EndingDecember 31 :
200320042005200620072008
2. Determination of excess investment incomea. Arithmetic average of previous 5 years salary increasesb. Arithmetic average of previous 5 years of asset returnsc, Excess of asset return over salary increased, Excess minus 2%e. Lesser of 0.5% or 2.d., times market value (not < 0)f. December 2008 monthly benefits paidg. Adjustment to assets (lesser of e. or f.)
2.796%11.820%9,024%7.024%
$1,945,1302,850,3541,945,130
3.684%1.320%0.000%0.000%
$03,208,120
.Q
D. Actuarial value of-assets (B.3. - C.2.gJ lli6A65.987 $324.723.Qil
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31,2008 Actuarial Valuation
Summary of Member Data
5
December 31, 2007 December 31, 2008
A. Active members1. Number
a. Fully vestedb. Nonvestedc. Total
2. Average age3. Average years of service4. Total mIDua1 payroll for the year ending on valuation date5. Average annual salary
B. Vested terminated members1. Number2. Total mIDua1 deferred be~efits
C. Retirees1. Age & service2. Disability3. Total4. Total mIDua1 benefits5. Average arIDua1 benefit
D. Beneficiaries1. Spouses2. Children3. Total4. Total annual benefits5. Average alTIma1 benefit
E. Total number ofmembers CA.I. + D.I. + C.3. + D.3J
14.Q
1459.735.8
$1,185,563$84,683
o$0
627o
627$28,274,121
$45,094
233o
233$5,917,285
$25,396
874
14Q
1460.736.8
$1,248,886$89,206
o$0
607o
607$28,812,621
$47,467
239o
239$6,409,470
$26,818
860
MINNEAPOLIS POLICE RELIEF ASSOCIATION
December 31,2008 Actuarial Valuation
Summary of Changes ill Membership
Vestedhctives Tenninees Retirees Beneficiaries Total
A. Number ofmembers 011 December 31, 2007 14 0 627 233 874
B. Changes ill membership
1. Retirements 0
2. Vested terminations 0
3. Active deaths 0
4. Retiree deaths (20) 16 (4)
5. Beneficiary deaths (10) (10)
6. ExpiTation Of survivitlg child betiefits 0
7. Corrections 0
8. Total changes 0 0 (20) 6 (14)
C. Number ofmembers on December 31, 2008 14 0 607 239' 860
6
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Funding Basis
Actuarial Values Used to Determine Contribution
7
December 31,2007 December 31,2008
$11,361,941o
365,853,39851,252,960
.Q
428,468,299
A. Actuarial present value ofprojected benefits (the value ofall/uture benefitsto be paid to the current group o/members)
1. Active members2. Vested terminated members3. Retired members4. Spouses and children receiving benefits5. Disabled members receiving benefits6; Total present value of projected benefits
$13,449,118o
432,662,53661,056,985
.Q
507,168,639
B. Actuarial accrued liability (the cost allocated to allprioryear~1. Active members2. Vested terminated members.·3. Retired members4. Spouses and children receiving benefits5. Disabled members receiving benefits6. Total actuarial accrued liability
C. Amortization o/unfunded actuarial accrued liabilifJ!1.. Total actuarial accrued liability (B.6.)2. Actuarial value of assets3. Unfunded actuarial accrued liability (1. - 2.)4. Funded status (2. -;- 1.)5. Years left in amortization period6. Amortization payment
$11,174,538o
: 365,853,39851,252,960
.Q
428,280,896
$428,280,896376,465,987
51,814,90987.9%
125,830,498
$13,229,228o
432,662,53(;1.61,056,985'
.Q
506,948,749
$506,948,749324,723,051182,225,698
64.1%11
21,797,105
D. Normal cost (the cost allocated to the current year)1. Present value of future normal costs (A.6. - B.6.)2. Normal cost as a dollar amount
a. Total normal costb. Statutory adjustment for member contributionsc. Employer normal cost (a. - b.)
3. Payroll for year ending on valuation date4. Normal cost as a percent of active payroll
a. Total normal cost (2.a. -;- 3.)b. Statutory adjustment for member contributions (2.b. -;- 3.)c. Employer nonnal cost (2.c. -;- 3.)
$187,403 $219,890
187,403 219,890 '94,845 99,91192,558 119,979
1,185,563 1,248,886
15.81 % 17.61%8.00% 8.00%7.81% 9.61%
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Funding Basis
Changes in the Unfunded Actuarial Accrued Liability
A. Liability gain or loss for the year ending 011 December 31, 20081. Expected actuarial accrued liability (AAL)
a. AAL as ofDecember 31,2007b. Normal cost as of December 31,2007 (excluding expenses)c. Interest to December 31, 2008 on the AAL and normal costd. Benefit payments for the year (excluding post-retirement payments)e. hlterest on benefitpayments (1/2 year)£ Expected AAL on December 31, 2008 (sum of a. through e.)
2. Actual AAL on December 31,2008a. Before any assumption or plan changesb. After unit value changesc. After assumption and unit value changesd. After plan changes
3. Liability (gain) or loss .a. Due to plan experience different from that exi)ected (2a. ~ If.)b. Due to change in unit value different fi'om expected (2.b. - 2.a.)c. Due to changes in actuarial assumptions (2co - 2b.)d. Due to plan changes (2d. - 2c.)e. Total (a. + b. + c. + d.)
B. Asset gain or 10ssJor·the year ending on December 31,200'81. Expected actuarial value of assets
a. Actuarial value of assets on December 31, 2007b. Benefit payments and expenses (including post-retirement payments)c. Contributions for the yeard. Expected return on assetse. Expected actuarial value of assets on December 31, 2008 (sum of a. through d.)
2. Actual actuarial value of assets on December 31, 20083. Asset (gain) or loss (1e. - 2.)
C. Changes in the unfunded AAL1. Expected unfunded AAL on December 31, 20082. Changes
a. Actuarial (gain) or loss other than change in unit valueb. Change in unit value different fi'om expectedc. Changes in actuarial methods and assumptionsd. Plan changee. Total change
3. Unfunded AAL on December 31, 2008
8
$428,280,896187,403
25,708,098(35,666,049)(l,069~
417,440,367
424,206,345429,675,101506,948,749506,948,749
6;765,9785,468,756
77,273,64812
89,508,382
376,465,987(38,186,021)
5,811,348.2L616,719
365,708,033324,723,051
40,984,982
51,732,334
47,750,9605,468,756
77,273,648
12130,493,364182,225,698
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 3J, 2008 Actuarial Valuation
Accounting Basis
Statement of Plan Net Assets
9
A. Investment assets Market BookFixed income 21,784,576 23,174,552State Board of Inveshnent 139,832,761 171,544,601Mutual funds 71,642,459 95,025,994Cash equivalents and other investments 16,888,314 18,693,108Total 250,148,110 308,438,255
B. Checking account 5,943 5,943
C. Accrued/payableAccrued investment income 222,000 222,000Accrued contributions 82,354 82,354Investment sales receivable 999,931 999,9) 1Investment purchase payable ° 0Accounts payable (2,208,123) (2,208,123)Total (903,838) (903,838)
D. Total pension assets (A. +B. + C.) $249,250,215 $307,540,360
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 3/. 2008 Actuarial Valuation
Accounting Basis
Statement of Changes in Plan Net Assets
10
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Accounting Basis
Schedule of Funding Progress(Dollar amounts in thousands)
Actuarial Actuarial UnfundedAs of Value of Accrued AAL Funded
December 31: Assets Liability (AAL) (VAAL) Ratio
1992 $265,307 $325,891 $60,584 81.4%1993 288,942 347,879 58,937 '83.1 %
1994 280,772 344,087 63,315 81.6%1995 294,692 358,657 63,965 82.2%
1996 320,686 382,957 62,271 83.7%
1997 362,683 398,728 36,045 91.0%1998 "387,530 414,694 27,164 93.4%
1999 427,122 447,596 20,474 95.4%
2000 391,083 447,086 56,003 ' 87.5%
2001 349,170 464,649 115,479 75.1%
2002 309,667 463,487 153,820 66.8%
2003 300,154 465,276 165,122 64.5%2004* 322,278 469,557 147,279 68.6%
2005 359,032 464,222 105,190 77.3%
2006 377,013 439,992 62,979 ,85.7%
2007 376,466 428,281 51,815 87.9%
2008 324,723 506,949 182,226 64.1%
*After change in' benefit and funding provisions, ji-om restated report
11
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Accounting Basis
Schedule of Employer Contributions
Total
Year Ended City State Employer
December 31 : Contributions Contributions Contributions
1992 $5,926,443 $2,975,695 $8,902,138
1993· 5,664,620 2,550,138 . 8,214,758
1994 4,437,124 2,354,380 6,791,504
1995· 4,583,006 3,776,109 8,359,115
1996 4,144,998 4,317,908 8,462,906
1997 3,907,944 3,630,557 7,538,501
1998 2,698,561 3,431,684 6,130,245
1999 698,080 3,021,373 3,719,453
2000 1,295,071 3,268,06~ . 4,563,134
2001 10,812 .. 3,448,383 3,459,195
2002· 2,912,060 5,413,835 8,325,895
2003 13,540,305 5,879,854 19,420,159
2004 20,800,530 7,089,022 27,889,552
2005 24,976,747 6,573,582 31,550,329
2006 5,366,224 5,200,521 10,566,745
2007 . 3,647,229 3,167,214 6,814,443
2008· 3,535,999 2,275,349 . 5,811,348
12
Contract Unit Values: The most recent contract as ofthe date of this report expired October 14, 2008. The last unitvalue determined under that contract was 96.64 effective as of January 1, 2008.
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Historical Tables
Historical Funding Ratio Schedule(Dollar amounts in thol/sands)
14
As ofDecember 31:
19891990*19911992*1993*1994*1995199619971998*199920002001200220032004*2005200620072008
ActuarialAcclUedLiability
$290,537299,151309,429325,891347,879344,087358,657382,957398,728414,694447,596447,086464,649463,487465,276469,557464,222439,992428,281506,949
ActuarialValue ofAssets
$211,081223,919238,975265,307288,942280,772294,692320,686362,683387,531418,122
;. 391,083349,170309,667300,154322,278359,032377,013376,466324,723
PercentFunded
72.7%74.9%77.2%81.4%83.1%81.6%82.2%83.7%91.0%93.4%95.4%87.5%75.1%66.8%64.5%68.6%77.3%85.7%87.9%64.1%
*After change in benefit andfunding provisions, from restated report
500
450
400
350
300
250
200
150
1001991 1993 1995 1997 1999 2001 2003 2005 2007
MINNEAPOI~IS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Historical Tables
History of Actuarially Determined Employer Contributions
15
ValuationDecember 31 :
198919901991199219931994
, 1995
199619971998199920002001200220032004*2005200620072008
Nonna1 Costas a Percentof Payroll
24.53%25.61 %25.58%25.62%25.57%25.43%24.91 %24.83%24.66%26.53%26.50%24.03%23.10%21.56%19.78%18.96%17.93%16.87%15.8'1 %17.61 %
Amortizationof UnfundedActuarialLiability
$6,727,4956,547,8506,319,1935,615,5875,663,6766,331,0006,683,1066,831;1654,175,2613,344,8092,624,2387,767,618
17,543,53325,994,75631,678,80714,305,93210,676,2476,711,4135,830,498
21,797,105
The required municipal normal cost contribution is the total normal cost shownless an 8% adjustment for member payroll contributions.
*After change in benefit andfunding provisions, Fom restated report
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Historical Tables
Comparative Schedule of Active Members
Number ofValuation Active Projected Averages
December 31: Members Payroll Age Service Pay
1989 460 $18,421,160 46.6 21.0 $40,0461990 433 17,859,951 47.3 21.8 41,247
1991 410 17,658,290 48.0 22.5 43,0691992 381 16,913,352 48.5 23.2 44,3921993 349 16,576,802 49.2 24.0 47,4981994 307 14,799,242 49.8 24.6 48,2061995 278 13,937,530 50.3. 25.3 50,1351996 239 13,002,556 50.9 25.9 54,4041997 188 10,817,520 51.1 26.3 57;540 '.
1998 148 . 8,856,616 51.5 26.8 59,8421999* 123 7,804,036 51.3 26.6 63,4472000 97 6,583,342 51.7 27.2 67,870
2001 73 5,238,480 52.6 28.4 71,7602002 53 3,955,411 53.7 29.4 74,6302003 24 1,860,356 55.0 30.4 77,515 .
2004 18 1,429,255 55.2 31.1 79,4032005 17 1,403,846 57.4 33.3 82;5792006 15 1,236,046 58.8 34.5 82,403
2007 14 1,185,563 59.7 35.8 84,6832008 14 1,248,886 60.7 36.8 89,206
"rpayroll used to calculate normal cost.for calendar year 1999 is $7,503,881.
16
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31,2008 Actuarial Valuation
Historical Tables
Comparative Schedule of Inactive Members
Number of Retirees and Beneficiaries Actual ProjectedAs of Added Removed On Valuation Annual Annual Present Value
December 31: to Rolls from Rolls Date Benefits Benefits ofBenefits
1989 40 31 752 $12,988,156 $12,007,149 $163,236,3241990 33 33 752 13,179,656 12,579,039 169,649,676
·1991 30 25 757 12,726,042 13,152,752 175,237,6801992 55 28 784 14,764,375 14,352,332 192,504,8401993 45 33 796 15,646,456 15,690,269 212,051,8561994 56 40 812 18,040,942 17,238,698 226,104,5061995 35 39 808 17,597,704 17,375,347 235,698,3271996 51 28 831 20,240,597 19,435,342 263,685,600
. 1997 82 35 878 25,513,260 . 21,662,581 298,497,9841998 65 '·23 920 24,511,366 . 24,020,183 330,745,5361999 34 37 917 26,213,944 26,701,339 368,568,5242000 34 37 924 30,697,541 . 28,043,660 385,062,7552001 41 34 933/ 30,503,691 30,398,324 413 ,026,2642002 35 40 928 30,724,261 31,446,287 423,583,4832003 40 31 935 31,855,476 33,194,254 447,163,5902004* 40 31 921 32,797,952 34,479,242 455,208,1692005 10 27 904 33,789,746 34,157,890 450,360,5512006 19 39 884 34,121,401 34,216,563 428,105,6512007 14 38 860 36,033,230 34,191,406 417,106,3582008 16 30 846 37,607,090 35,222,091 493,719,521
*After change in benefit andfunding provisions, fi'om restated report
17
1. Mortality
2. Withdrawal
3. Disability
4. Retirement age
5. Interest rate
MINNEAPOLIS POLICE RELIEF ASSOCIATIONDecember 31, 2008 Actuarial Valuation
Actuarial Methods and Assumptions
The 1983 GAM Mortality Table set back 2 years formales and set forward 1 year for females.
Changedfrom the UP-1984 Mortality Table setforward2 years for males and set back 3 years for females as ofDecember 31, 2007
The rate of withdrawal is 0% after age 50. The plan isfiozen, and all remaining active members are over age 50.
Rates varying by age. Sample disability rates are asfollows:
Age Rate25 0.08%30 0.0835 0.0840 0.2045 0.2650 0.495'5 0.89
Members are assumed to retire at age'54, or attained ageif older.
6% compounded annually.
18
6. Unit value/Salary scale
7. Actuarial cost method
The unit value as ofDecember 31,2008, based on themost recent,union contract (which expired October 14,2008) is 96.64. All future unit values for actives andinactives are assumed to increase 4% per year ii-om thevaluation date.
The Entry Age Normal Cost Method. Under this method,the n01111al cost for an individual member is the levelpercentage ofpay required, beginning on the date ofjoining the association, to accumulate the funds needed topay the member's accrued benefits by their assumedretirement age. The actuarial accrued liability is theaccumulated value ofthese annual normal costs on agiven date. The nonnal cost and accrued liability for theplan is the total of these values for
19MINNEAPOLIS POLICE RELIEF ASSOCIATION
December 31, 2008 Actuarial Valuation
Summary of Plan Provisions
1. Normal retirement benefit
2. Deferred vested benefit
3. Disability benefit
4. Surviving spouse's benefit
5. Surviving children's benefit
6. Member contributions
Annual benefit of30.40/S0 of base pay for first 19 yearsof service. An additionaI4.60/S0 units are awarded forthe 20th year of service. For service years in excess of20, an additional 1.60/S0 is granted; to a maxinmm of 25years of service and 43/S0 of base pay. "Base pay" forthis purpose means the maximum monthly salary of a firstclass patrolman. Members must be at least age 50 with 5years of service to receive this benefit.
The plan is fi-ozen. All remaining active tpembers areeligible for an immediate benefit upon retirement.
Annual benefit of34/S0 ofbase pay fat members no. longer able to perfonn the duties of a policeman due to
disability.
Annual benefit of23/80 ofbase pay for the survivingspouse of an active or retired member.
Annual benefit of S/80 of basepay for each surviving childof ail active or retired member. Benefits continue to ageIS, or to age 22 ifthe child is a full-time student. Thetotal benefit for surviving children and spouse combined islimited to 41180 ofbase pay.
Members are required to contribute S% of base pay.After 25 years of service, member contributions are paidto a separate health insurance acqount. In the event ofdeath without survivorship, member contributions arerefundable including 5%·interest from the month thecontribution is made.