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01/29/1981 - City Council Special
AGENDA EAGAN CITY COUNCIL SPECIAL MEETING EAGAN,MINNESOTA CITY HALL JANUARY 29, 1981 7:00 P.M. I . ROLL CALL AND PLEDGE OF ALLEGIANCE II. FIREMENS RELIEF PENSION FUND III OTHER IV. ADJOURNMENT MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JANUARY 28, 1981 SUBJECT: FIREMENS RELIEF PENSION FUND This memo is intended to summarize various information the City Council has received, reviewed and presented to the Relief Asso-- =- ciation regarding the proposed conversion from a Defined Benefit _ Plan to a Defined Contribution Plan pension program. - - - - EXISTING RETIREMENT PROGRAM The existing retirement/pension plan for the volunteer firemen is referred to as a Defined Benefit Plan. Each fireman is presently guaranteed a pension upon retirement , after twenty (20) years and age 50, a benefit of $160 per month or a lump sum of $24,000. For each year beyond twenty (20) years of service, an additional $8 .00 per month per year of service to. a maximum of $240 monthly, or lump sum of $1 ,200 per year to a maximum of $36 ,000. In other words , the pension cannot increase after thirty ( 30) years of service. Retired members with 10-14 years of service shall receive 75% of the earned benefit if that fireman had 10 years of service prior to the legislation. For those firemen with less than 10 years , the vesting plan is 50% at 10 years and then a 5% increase per year until 20 years is earned. Retired members with 15 or more years of service shall receive 100% of the earned benefit. A member must be at least 50 to collect. Payments for less than 20 years of service shall be lump sum payments . There are no disability benefits ; however, a death benefit of $1 ,000 is paid to all active firemen. This benefit is no longer paid after retire- ment . This program is based on the mortality rates determined by the United States Life Table ( 1959-61 ) . The interest rate used for the actuarial assumption for calculating the unfunded liability is 5". The mortality table and interest rate are -conservative . The Relief Association' s rate of return on their assets is greater than 10%. Therefore , with the current benefit level , the unfunded liability is more than likely much lower than the projected $200 ,000 plus recorded to date . The City anT Relief Association entered into a Management Agency Account Agreement with the Marquette National Bank of Minneapolis to handle the investment of funds and administer all retirement accounts . This agreement was approved in 1979 . The Relief Association is requesting (October 1980) an increase from $160 to $280 per month on a lump sum increase from $24,000 to $42 ,000. For each year beyond twenty (20) years of service an additional $14.00 per month per year of service to a maximum of $63 ,000. S � Firemens Relief Pension Fund Memo January 28 , 1981 Page Two PROPOSED RETIREMENT PROGRAM The proposed retirement/pension plan is referred to as a Defined Contribution Plan. This plan would eliminate the unfunded liability. The City borrows money, transfers the amount to the assets of the Relief Association. This increases the base amount - for the pension plan, allowing additional monies for the firemen through investments . The unfunded liability debt against a certain City fund would be retired through an annual payment with interest from the 2% insurance monies collected by the Relief Association. -- The City would then commit an annual contribution of $400 .00 per fireman to the Relief Association. The contribution for 1981 would be $400 x 83 or $33,200. Once the unfunded liability debt is retired, monies from the 2% insurance would continue to be used for increasing the assets in the retirement pension fund. Two ( 2 ) proposals are offered for consideration; $400 .00 contribution with a projected account of $27 ,000, assuming a 7% interest rate and a 9% interest rate. The death benefit is better for the fire- men with 1-10 years of service . The total amount in his or her account is paid if death should occur. This plan assumes a more realistic , 1971 annuity mortality table . The firemen would receive a minimum sum payment of $27 ,000. These amounts only increase depending on the years of service and age of the fireman. Attached are two ( 2 ) proposals based on 770 and 9%. SUMMARY This information provides a brief review of the current Defined Benefit Plan and the Proposed Contribution Plan. There were many different reports and tables to analyze in gathering information for this report . I will not guarantee the accuracy and under- standing of all the facts , however, I believe the information to be correct . The following table provides a breakdown of the annual contribution for 1979-81 for the existing plan: Total Premium Raised Pension Tax Locally Contribution 198f ( Budget) $31, 259 $56 ,000 $87 ,259 1980 28 , 326 26 ,902 55 ,228 1979 25,859 271284 53 ,143 Hopefully, this information is helpful . City Administrator MU9 ljbi CITY OF EAGAN EXHIBIT 2 Employee Current Retirement Expected 1981 Annual Projected Projected Nu,dber Age Age Benefit Account Contribution Account Benefit 1 56 58 $1920.00 $22,859.64 $400.00 $27,000.00 $2637.30 2 55 57 1920.00 22,849.64 400.00 27,000.00 2586.78 3 54 56 1920.00 22,859.64 400.00 27,000.00 2539.86 4 52 54 1920.00 221859.64 400.00 27,000.00 2455.23 5 52 54 1920.00 22,859.64 400.00 27,000.00 2455.23 6 51 57 1920.00 16,084.62 400.00 27,000.00 2586.78 7 49 53 2112.00 19,243.29 400.00 27,000.00 2416.93 8 49 53 2208.00 19,243.29 400.00 27,000.00 2416.73 9 48 53 2208.00 17,610.55 400.00 27,000.00 2416.93 10 48 53 2208.00 17,610.55 400.00 27,000.00 2416.93 11 48 53 2208.00 17,610.55 400.00 27,000.00 2416.93 12 48 55 1920.00 14,658.53 400.00 27,000.00 2496.12 13 48 57 1920.00 12,080.12 400.00 27,000.00 2586.78 14 47 53 2304.00 16,084.62 400.00 27,000.00 2416.93 15 47 53 2208.00 16,084.62 400.00 27,000.00 2416.93 16 47 58 1920.00 9,828.04 400.00 27,000.00 2637.30 17 47 58 1920.00 9,828.04 400.00 27,000.00 2637.30 18 46 53 2400.00 14,658.53 400.00 27,000.00 2416.93 19 46 53 2304.00 14,658.53 400.00 27,000.00 2416.93 20 46 53 1920.00 14,658.53 400.00 27,000.00 2416.93 21 46 56 1920.00 10,916.00 400.00 27,000.00 2539.86 22 46 56 1920.00 10,916.00 400.00 27,000.00 2539.86 23 46 57 1920.00 9,828.04 400.00 27,000.00 2586.78 24 46 53 2496.00 15,208.62 400.00 27,883.34 2496.00 25 45 53 2016.00 13,325.73 400.00 27,000.00 2416.93 26 44 53 2592.00 13,143.93 400.00 28,955.77 2592.00 27 44 53 2400.00 12,080.12 400.00 27,000.00 2416.93 28 44 53 2112.00 12,080.12 400.00 27,000.00 2416.93 29 44 53 2016.00 12,080.12 400.00 27,000.00 2416.93 30 43 53 2208.00 10,916.00 400.00 27,000.00 2416.93 31 43 53 2112.00 10,916.00 400.00 27,030.00 2416.93 32 43 60 1920.00 4,642.22 400.00 27,000.00 2750.20 33 42 53 2304.00 9,828.04 400.00 27,000.00 2416.93 34 42 53 2016_00 9,828.04 400.00 27,000.001 2416.93 35 42 53 1920.00 9,828.04 400.00 27,000.00 2416.93 36 42 57 1920.00 6,142.88 400.00 27,000.00 2586.78 37 42 60 1920.00 3,964.69 400.00 27,000.00 2750.20 38 41 53 2112.00 8,811.25 400.00 27,000.00 2416.93 39 -._4L -54_ ___-_ 1920.00 7,860.98 400.00 27,000.00 2455.23 40 41 59 1920.00 3,964.69 400.00 27,000.00 2691.73 Hewitt t- M-1209 Page 2 Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age Benefit Account Contribution Account Benefit 41 40 53 $2496.00 $8,227.53 $400.00 $27,883. 34 -$2496.00 42 40 53 2016.00 7,860.98 400.00 27,000.00 2416.93 43 40 53 1920.00 7,860.98 400.00 27,000.00 2416.93 44 39 53 2688.00 8,147.27 400.00 30,028.21 2688.00 45 39 53 2304.00 6,972.88 400.00 27,000.00 2416.93 46 39 53 2112.00 6,972.88 400.00 27,000.00 2416.93 47 39 58 1920.00 3,331.49 400.00 27,000.00 2637.30 48 38 53 2304.00 6,142.88 400.00 27,000.00 2416.93 49 38 53 2208,00 6,142.88 400.00 27,000.00 2416.93 50 37 53 2304.00 5,367.17 400.00 27,000.00 2416.93 51 37 53 1920.00 5, 367.17 400.00 27,000.00 2416.93 52 37 55 1920.00 3,964.69 400.00 27,000.00 2496.12 53 36 53 2400.00 4,642.22 400.00 27,000.00 2416.93 54 36 53 2304.00 4,642.22 400.00 27,000.00 2416.93 55 36 53 1920.00 4,642.22 400.00 27,000.00 2416.93 56 35 53 2304.00 3,964.69 400.00 27,000.00 2416.93 57 35 53 2016.00 3,964.69 400.00 27,000.00 2416.93 58 34 53 1920.00 3,331.49 400.00 27,000.00 2416.93 59 33 53 2016.00 2,739.71 400.00 27,000.00 2416.93 60 32 53 2208.00 2,186.64 400.00 27,000.00 2416.93 61 32 53 2112.00 2,186.64 400.00 27.000.00 2416.93 62 32 53 2112.00 2,186.64 400.00 27,000.00 2416.93 63 32 53 2112.00 2,186.64 400.00 27,000.00 2416.93 64 31 53 2400.00 1,669.76 400.00 27,000.00 2416.93 65 31 53, 2304.00 1,669.76 400.00 27,000.00 2416.93 66 31 53 2208.00 1,669.76 400.00 27,000.00 2416.93 67 29 53 2784.00 1, 543.65 400.00 31,100.00 2784.00 68 29 53 2496.00 909.37 400.00 27,883.34 2496.00 69 28 53 2880.00 1,101.77 400.00 31,279.38 2800.00 70 28 53 2592.00 673.64 400.00 28,955.77 2592.00 71 28 53 2496.00 476.05 400.00 27,883.34 2496.00 72 25 53 2880.00 0 400.00 32,279.08 2880.00 73 25 53 2880.00 0 400.00 32,279.08 2880.00 74 25 53 2880.00 0 400.00 32,279.08 2880.00 75 24 53 2880.00 0 400.00 34,938.61 2880.00 76 24 53 2880.00 0 400.00 34,938.61 2880.00 77 23 53 2880.00 0 400.00 37,784.31 2880.00 78 23 53 2880.00 0 400.00 37,784.31 2880.00 79 23 53 2880.00 0 400.00 37,784.31 2880.00 80 22 53 2880.00 0 400.00 40,829.22 2880.00 --=-=-81 ---22 --,--53 ----- _ _ 2880.00-_ _ 0 400.00 40,928.22 2880.00 82 22 53 2880.00 0 400.00 40,820.22 2880.00 83 19 53 2880.00 0 400.00 51,303.51 2880.00 ASSUMPTIONS 1. Mortality according to 1971 group annuity mortality table. 2• Interest of 7% annually. \\\\ ,N:-12uj 1/81 CITY OF EAGAN EXHIBIT 4 Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age Benefit Account Contribution Account Benefit - 1 56 - - 58 -$1920.00 $22,021.72 $400.00 $27,000.00 $3,049.12 2 55 57 1920.00 22,021.72 400.00 27,000.00 2,999.90 3 54 56 1920.00 22,021.72 400.00 27,000.00 2,954.40 - 4 52 54 1920.00 22,021.72 400.00 27,000.00 2,872.83 - -- 5 52 54 1920.00 22,021.72 400.00 27,000.00 2,872.83 _. 6 51 57 1920.00 14, 304.85 400.00 27,000.00 2,999.90 _. 7 49 53 2112.00 17,831.59 400.00 27,000.00 2,836.10 8 49 53 2208.00 17,831.59 400.00 27,000.00 2,836.10 9 48 53 2208.00 15,992.29 400.00 27,000.00 2,836.10 10 48 53 2208.00 15,992.29 400.00 27,000.00 2,836.10 11 48 53 2208.00 15,992.29 400.00 27,000.00 2,836.10 12 48 55 1920.00 12,756.74 400.00 27,000.00 2,912.15 13 48 57 1920.00 10,033.45 400.00 27,000.00 2,999.90 14 47 53 2304.00 14, 304.85 400.00 27,000.00 2,836.10 15 47 53 2208.00 14, 304.85 400.00 27,000.00 2,836.10 16 47 58 1920.00 7,741.31 400.00 27,000.00 3,049.12 17 47 58 1920.00 7,741.31 400.00 27,000.00 3,049.12 18 46 53 2400.00 12,756.74 400.00 27,000.00 2,836.10 19 46 53 2304.00 12,756.74 400.00 27,000.00 2,836.10 20 46 53 1920.00 12,756.74 400.00 27,000.00 2,836.10 21 46 56 1920.00 8,838.03 400.00 27,000.00 2,954.40 22 46 56 1920.00 8,838.03 400.00 27,000.00 2,954.40 23 46 57 1920.00 7,741.31 400.00 27,000.00 2,999.90 24 46 53 2406.00 12,756.74 400.00 27,000.00 2,836.10 25 45 53 2016.00 11,336.46 400.00 27,000.00 2,836.10 26 44 53 2592.00 10,033.45 400.00 27,000.00 2,836.10 27 44 53 2400.00 10,033.45 400.00 27,000.00 2,836.10 28 44 53 2112.00 10,033.45 400.00 27,000.00 2,836.10 29 44 53 2016.00 10,033.45 400.00 27,000.00 2,836.10 30 43 53 2208.00 8,838.03 400.00 27,000.00 2,836.10 31 43 53 2112.00 8,838.03 400.00 27,000.00 2,836.10 32 43 60 1920.00 2,821.52 400.00 27,000.00 3,159.78 33 42 53 2304.00 7,741.31 400.00 27,000.00 2,836.10 34 42 53 2016.00 7,741.31 400.00 27,000.00 2,836.10 35 42 53 1920.00 7,741. 31 400.00 27,000.00 2.836.10 36 42 57 1920.00 4,188.25 400.00 27,000.00 2,;999.90 37 42 60 1920.00 2,221.58 400.00 27,000.00 3,159.78 38 41 53 2112.00 6,735.15 400.00 27,000.00 3,836.10 39 41 54 1920.00 5,812.06 400.00 27,000.00 2,872.83 40 41 59 1920.00 2,221.58 400.00 27,000.00 3,102.38 Hewi'?A= .ocia' a t M-1209 1/81 Page 2 Employee Current Retirement Expected 1981 Annual Projected Projected Number Ace Age Benefit Account Contribution Account Benefit 41 40 53 $2496.00 $5,812.06 $400.00 $27,000.00 $2,836.10 42 40 53 2016.00 5,812.06 400.00 27,000-.00 2,836.10 43 40 53 1920.00 5,812.06 400.00 27,000.00 2,836.10 44 39 53 2688.00 4,965.19 400.00 27,000.00 2,836.10 45 39 53 2304.00 41965.19 400.00 27,000.00 2,836.10 46 39 53 2112.00 4,965.19 400.00 27,000.00 2,836.10 47 39 _ 58 1920.00 1,671.18 400.00 - 27,000.00 3,049.12 48 38 53 2304.00 4,168.25 400.00 27,000.00 2,836.10 49 38 53 2208.00 4,188.25 400.00 27,000.00 2,836.10 50 37 53 2304.00 3,475.46 400.00 27,000.00 2,836.10 51 37 53 1920.00 3,475.46 400.00 27,000.00 2,836.10 52 37 55 1920.00 2,221.58 400.00 27,000.00 2,912.15 53 36 53 2400.00 2,821.52 400.00 27,000.00 2,836.10 54 36 53 2304.00 2,821.52 400.00 27,000.00 2,836.10 55 36 53 1920.00 21821.52 400.00 27,000.00 2,836.10 56 35 53 2304.00 2,221.58 400.00 27,000.00 2,836.10 57 35 53 2016.00 2,221.58 400.00 27,000.00 2,836.10 58 34 53 1920.00 1,671.18 400.00 27,000.00 2,836.10 59 33 53 2016.00 1,166.22 400.00 27,000.00 2,836.10 60 32 53 2208.00 702.95 400.00 27,000.00 2,836.10 61 32 53 2112.00 702.95 400.00 27,000.00 2,836:10 62 32 53 2112.00 702.95 400.00 27,000.00 2,836.10 63 32 53 2112.00 702.95 400.00 27,000.00 2,836.10 64 31 53 2400.00 277.94 400.00 27,000.00 2,836.10 65 31 53 2304.00 277.94 400.00 27,000.00 2,836.10 66 31 53 2208.00 277.94 400.00 27,000.00 2,836.10 67 29 53 2784.00 0 400.00 30,714.93 2,836.10 68 29 53 2496.00 0 400.00 30,715.93 2,836.10 69 28 53 2800.00 0 400.00 33,880.36 2,836.10 70 28 53 2592.00 0 400.00 33,880.36 2,836.10 71 28 53 2496.00 0 400.00 33,880.36 2,836.10 72 25 53 2880.00 0 400.00 45,187.29 2,880.00 73 25 53 2880.00 0 400.00 45,187.29 2,880.00 74 25 53 2880.00 0 400.00 45,187.29 2,880.00 75 24 53 2880.00 0 400.00 49,654.14 2,880.00 76 24 53 2880.00 0 400.00 49,654.14 2,880.00 77 23 53 2880.00 0 400.00 54,523.02 2,880.00 78 23 53 2880.00 0 400.00 54,523.02 2,880.00 79 23 53 2880.00 0 400.00 54,523.02 2,880.00 80 22 53 2880.00 0 400.00 59,830.09 2,880.00 81 22 53 2880.00 0 400.00 59,830.09 2,880.00 82 ,---22 --_ =--53 2880.00 _ __`-__0 - 400.00 ._-- _59,820.09 2,880.00 83 19 53 2880.00 0 400.00 78,792.94 2,880.00 ASSUMPTIONS 1. Mortality according to 1971 group annuity mortality table. 2. Interest of 9% annually. If any member of the City Council wishes to discuss any portion of this information, the City Administrator will be available at his office at 6 :40 p.m. prior to the meeting. Attached are two exhibits that were run by Hewitt Associates at the request of the City Council . Exhibit "A" compares to Exhibit 2 as discussed at the 1-29-81 meeting, however, assumes a total annual contribution of $42,000 or $506 .00 per firefighter. The second Exhibit "B" makes the same assumptions as Exhibit "A" but provides for a higher 1981 account balance. The net effect is a slight increase in the projected account. The 1981 Account Balance for Exhibit "A" is $606, 775 , while compared to $663 ,158 for Exhibit "B" . M-1209 2/81 CITY OF EAGAN EXHIBIT B Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age Benefit Account Contribution Account Benefit 1 56 58 $1,920.00 $22,859.63 $506 $27,219.42 $2,658.73 2 55 57 1,920.00 22,859.64 506 27,219.42 2,607.81 3 54 56 1,920.00 22,859.64 506 27,219.42 2,560.50 4 52 54 1,920.00 22,859.64 506 27,219.42 2,475.19 5 52 54 1,920.00 22,859.64 506 27,219.42 2,475.19 6 51 57 1,920.00 16,084.62 506 27,758.23 2,659.43 7 49 53 2,112.00 19,243.29 506 27,470.64 2,459.06 8 49 53 2,208.00 19,243.29 506 27,470.64 2,459.06 9 48 53 2,208.00 17,610.55 506 27,609.58 2,471.49 10 48 53 2,208.00 17,610.55 506 27,609.58 2,471.49 11 48 53 2,208.00 17,610.55 506 27,609.58 2,471.49 12 48 55 1,920.00 14,658.53 506 27,917.32 2,580.92 13 48 57 1,920.00 12,080.12 506 28,269.67 2,708.43 14 47 53 2,304.00 16,084.62 506 27,758.23 2,484.80 15 47 53 2,208.00 16,084.62 506 27,658.23 2,484.80 16 47 58 1,920.00 9,828.04 506 28,673.07 2,800.72 17 47 58 1,920.00 9,828.04 506 28,673.07 2,800.72 18 46 53 2,400.00 14,658.53 506 27,917.32 2,499.04 19 46 53 2, 304.00 14,658.53 506 27,917.32 2,499.04 20 46 53 1,920.00 14,658.53 506 27,917.32 2,499.04 21 46 56 1,920.00 10,916.00 506 28,464.54 2,677.62 22 46 56 1,920.00 10,916.00 506 28,464.54 2,677.62 23 46 57 1,920.00 9,828.04 506 28,673.07 2,747.08 24 46 53 2,496.00 15,208.62 506 28,800.64 2,578.11 25 45 53 2,016.00 13,325.73 506 28,087.54 2,514.28 26 44 53 2,592.00 13,143.93 506 30,225.44 2,705.66 27 44 53 2,400.00 12,080.12 506 28,269.67 2,530.58 28 44 53 2,112.00 12,080.12 506 28,269.67 2,530.58 29 44 53 2,016.00 12,080.12 506 28,269.67 2,530.58 30 43 53 2,208.00 10,916.00 506 28,464.54 2,548.03 31 43 53 2,112.00 10,916.00 506 28,464.54 2,548.03 32 43 60 1,920.00 4,642.22 506 30,269.06 3,083.18 33 42 53 2, 304.00 9,828.04 506 28,673.07 2,566.69 34 42 53 2,016.00 9,828.04 506 28,673.07 2,566.69 35 42 53 1,920.00 9,828.04 506 28,673.07 2,566.69 36 42 57 1,920.00 6,142.88 506 29,663.69 2,841.98 37 42 60 1,920.00 3,964.69 506 30,603.89 2,117.29 38 41 53 2,112.00 8,811.25 506 28,896.19 2,586.67 39 41 54 1,920.00 7,860.98 506 29,134.91 2,649.37 40 41 59 1,920.00 3,964.69 506 30,603.89 3,051.02 Hewitt Associates M-1209 2/81 Page 2 rs EXHIBIT B Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age Benefit Account Contribution Account Benefit 41 40 53 $2,496.00 $8,227.53 $506 $30,018.19 $2,687.10 42 40 53 2,016.00 7,860.98 506 29,134.91 2,608.04 43 40 53 1,920.00 7,860.98 506 29,134.91 2,608.04 44 39 53 2,688.00 8,147.27 506 32,418.56 2,901.97 45 39 53 2,304.00 6,972.88 506 29,309.36 2,630.90 46 39 53 2,112.00 6,972.88 506 29,390.36 2,630.90 47 39 58 1,920.00 3, 331.49 506 30,962.19 3,024. 31 48 38 53 2,304.00 6,142.88 506 29,663.68 2,655.37 49 38 53 2,208.00 6,142.88 506 29,663.68 2,655.37 50 37 53 2,304.00 5,367.17 506 29,956.13 2,681.55 51 37 53 1,920.00 5,367.17 506 29,956.13 2,681.55 52 37 55 1,920.00 3,964.69 506 30,603.89 2,829.29 53 36 53 2,400.00 4,642. 22 506 30,269.06 2,709.56 54 36 53 2,304.00 4,642.22 506 30,269.06 2,709.56 55 36 53 1,920.00 4,642.22 506 30,269.06 2,709.56 56 35 53 2,304.00 3,964.69 506 30,603.89 2,739.53 57 35 53 2,016.00 3,964.69 506 30,603.89 2,739.53 58 34 53 1,920.00 3,331.49 506 30,962.19 2,771.61 59 33 53 2,016.00 2,739.71 506 31,345.53 2,805.92 60 32 53 2,208.00 2,186.64 506 31,755.70 2,842.64 61 32 53 2,112.00 2,186.64 506 31,755.70 2,842.64 62 32 53 2,112.00 2,186.64 506 31,755.70 2,842.64 63 32 53 2,112.00 2,186.64 506 31,755.70 2,842.64 64 31 53 2,400.00 1,669.76 506 32,194.61 2,881.93 65 31 53 2,304. 00 1,669.76 506 32,194.61 2,881.93 66 31 53 2,208.00 1,669.76 506 32,194.61 2,881.93 67 29 53 2,784.00 1,543.65 506 37,267.36 3,336.02 68 29 53 2,496.00 909.37 506 34,050.06 3,048.02 69 28 53 2,880.00 1,101.77 506 37,983.79 3,400.15 70 28 53 2,592.00 673.64 506 35,660.15 3,192.15 71 28 53 2,496.00 476.05 506 34,587.74 3,096.15 72 25 53 2,880.00 0 506 40,833.03 3,655.20 73 25 53 2,880.00 0 506 40,833.03 3,655.20 74 25 53 2,880.00 0 506 40,833.03 3,655.20 75 24 53 2,880.00 0 506 44,197.34 3,956.36 76 24 53 2,880.00 0 506 44,197.34 3,956.36 77 23 53 2,880.00 0 506 47,797.16 4,278.60 78 23 53 2,880.00 0 506 47,797.16 4,278.60 79 23 53 2,880.00 0 506 47,797.16 4,278.60 80 22 53 2,880.00 0 506 51,648.96 4,623.40 81 22 53 2,880.00 0 506 51,648.96 4,623.40 82 22 53 2,880.00 0 506 51,648.96 4,623.40 83 19 53 2,880.00 0 506 64,898.93 5,809.48 TOIAL 4G(.S) Is<. 41? 000 Assumptions 1. Mortality according to 1971 group annuity mortality table. 2. Interest of 7% annually.