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INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued: B. Firefighters Pension Plan - Continued Actuariallv Determined Contribution Reouirements and Contributions Made - The County's funding policy provides for actuarially determined periodic contribu- tions to the plans. The required contributions are actuarially determined and include normal costs (after deducting expected employee contributions) and the amount of the additional unfunded obligations created due to increases in plan benefits over a period of 40 years. Employer contribution rates are determined using the frozen entry age actuarial funding method. The Firemen's PERS uses the aggregate actuarial cost method which does not produce a past service liability that is amortized over a fixed number of years. Instead, the value of all projected benefits in excess of current assets is paid off over the future working years of the covered employee. Therefore, this method automatically funds the remaining value of benefits while there are still active members. The significant actuarial assumptions used to determine the actuarially deter- mined employer contribution requirement are the same as those used to compute the actuarial present value of credited projected benefits. There was a change in the current year in the benefit provision. The number of years considered in determining the average final compensation changed from 5 years to 3 years. This change increased the pension benefit obligation by $157,050. There were no changes in the current year in the actuarial funding method. The contributions made to the plan during the fiscal year ended September 30, 1992 were based on the actuarial report dated October 1, 1991. Contributions made by employees and employer are in agreement with the actuarially determined contributions. An analysis of contributions made during the current fiscal year is as follows: Contributions made: Employee - 7% of compensation $ 28,716 State - Premium Tax Refunds 75,638 Employer - Additional amount necessary to pay the annual normal cost and amortize any unfunded actuarial accrued liability - Total Contributions $104,354 Current Year Covered Payroll (same as total current year payroll) $380,268 Contributions as a Percentage of Current Year Covered Payroll: Employee 7.6% State 19.9% Employer 0% B-51