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Pension News

Everything about retirement changes if you’re one of the lucky few who have a pension in America — here’s why

As of March, 2025, only 14% of U.S. workers were covered by a defined benefit pension plan. (1) These plans are far more common among government employees and retirees. In fact, nearly 86% of state and local public sector workers have access to such a pension. And in 2024, 56% of retirees reported receiving pension income, and, a defined benefit pension could significantly shape your retirement outlook. The guaranteed monthly income offers stability, but it brings unique considerations for tax strategy and estate planning. Read More

Indiana Becomes First State to Require Bitcoin Options in Public Retirement Plans

Indiana lawmakers are making history with groundbreaking legislation that would force public retirement programs to offer Bitcoin investments. The bill could make Indiana the first state to mandate cryptocurrency exposure in government-managed pension funds. Unlike other states that simply allow crypto investments, Indiana’s approach requires them as standard options for public workers. Read More

Public Pension Benefits Dip in Value, Especially for Short and Mid-Term Workers

Retirement benefit values have declined by more than $140,000 for full-career public employees since 2006, mainly due to policy impacts following the 2008 recession that resulted in higher retirement ages, longer vesting schedules, and reduced cost-of-living-adjustments (COLAs). Full-career workers can still earn an adequate retirement income despite the drop, but those who leave public service earlier risk falling behind on savings, Read More

Quick Facts

PLAN

The City of Fort Lauderdale is the sponsor of the Fort Lauderdale Police and Firefighters’ Retirement System. All Fort Lauderdale sworn police officers and firefighters are eligible to participate in the plan. A seven-member Board of Trustees, who are either elected by the employees or appointed by the Mayor, administer the pension plan. The plan is a defined benefit plan that promises to pay a guaranteed benefit at retirement.

MEMBERS

  • 792 – Active members
  • 1,311 – Retired members and beneficiaries
  • 2,103 – TOTAL PLAN PARTICIPANTS

FUNDING Public safety officers contribute 10% of earnings into the pension plan. Members also pay 7.65% of earnings into Social Security and Medicare. Additional revenue to the pension plan comes from the State of Florida insurance premium tax, the City of Fort Lauderdale, and earnings generated on the invested assets. The plan’s investment returns provide 82% of the plan’s funding. Over the past 34 years, the plan had an average total return of 8.45% with positive returns during 28 years.

BENEFITS Retirement benefits are based on (1) average final earnings, (2) years of service, and (3) a benefit formula. Public safety officers can retire after 20 years of creditable service (or after 10 years at age 55). Overtime and unused leave do not increase retirement benefits. After 20 years of service, public safety officers are eligible to receive a retirement benefit equaling 60% of their monthly earnings. Retirement benefits are not automatically adjusted annually for cost – of – living changes. Retirees have not received a COLA since 2001.

DISABILITY Service-related disability benefits provided by the plan cannot exceed 65% of current monthly earnings. Non-service benefits cannot exceed 50% of monthly earnings, with reductions for Social Security benefits, Workers Compensation, or other earned income. The Fort Lauderdale Police and Firefighters’ Retirement System was established by City Ordinance and became effective January 3, 1973. As of 9-30-2024, the pension fund assets totaled $1.2 billion.

For more information, see the Annual Report Newsletter