Current Agenda

Pension News

28% of Americans Stare Down Retirement with Nothing Saved

As the cost of living continues to rise, retirement savings for many Americans are virtually nonexistent, painting a grim picture of their golden years. According to a recent survey, 28% of Americans have absolutely nothing saved for retirement. This alarming statistic is coupled with the revelation that 39% are not contributing to any retirement fund, while another 30% harbor doubts about ever being able to retire comfortably. While half of working households aged 50 to 60 had defined benefit plans in 1989, this number dwindled to a mere quarter by 2022. As a result, individuals are becoming increasingly reliant on personal savings to fund their retirement. Read More

St. Augustine asks voters to streamline police pensions

St. Augustine residents will have an extra item on their March 19 primary ballots asking whether the city should streamline the decision-making process on police pensions. That’s because, in St. Augustine, pensions for city staff and firefighters are a part of the city’s municipal code, meaning they can be changed simply by a vote of the City Commission. But pension plans for the St. Augustine Police Department are a part of the city’s charter. That means voters must approve changes. The final vote was 68% in favor and 32% opposed. Read More

Retirement Is Broken — Is a 'Pension Renaissance' Coming to Save Us?

As millions of Americans struggle to put away enough money for retirement, economists, lawmakers and workers alike are advocating for the revival of a retirement-planning relic. A movement for a return to defined benefit plans, aka pensions, is garnering support amid anxiety over the country’s looming retirement crisis. Though these benefits have largely disappeared from the private sector over the last four decades in favor of defined contribution plans like 401(k)s, recent survey data shows the advantages of pensions are one thing Americans seem to agree on. 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

  • 679 – Active members
  • 1,292 – Retired members and beneficiaries
  • 1,971 – 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 40% of the plan’s funding. Over the past 32 years, the plan had an average total return of 8.2% – greater than the assumed 7.2% rate of return.

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 9-30-2021, the pension fund assets totaled $1.1 billion.

For more information, see the Annual Report Newsletter