Retirement spending in Florida averages $1,194,451, study finds
Average residents of Florida will spend $1,194,451 during their retirement years, in a state where the cost of living is 0.6% more than the national average. The average monthly housing cost for those 65 and older who own their homes was estimated at $494. And the share of seniors in the state population is 20.5%. Read More
Naples to contribute more to pensions to offset lower expected investment returns
The city of Naples will have to increase contributions to its three retirement plans after the city’s pension board took actions to expect less funding from investments. The city’s three pension boards voted to lower the assumed rate of return on city pension investments from 7.3% to 7% beginning Oct. 1, 2020. Read More
Presumptive Benefit for Covid-19 Becomes Law
Public safety officers who die or are permanently and totally disabled due to COVID-19 will receive full federal benefits by legislation approved on August 14, 2020. The new law, Safeguarding America’s First Responders Act of 2020, establishes a presumptive benefit under the Public Safety Officer Benefit (PSOB) program for public safety officers who contract COVID-19 in 2020-2021. Read More
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, administers the pension plan. The plan is a defined benefit plan that promises to pay a guaranteed benefit at retirement.
- 793 – Active members
- 1,167 – Retired members and beneficiaries
- 1,930 – 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 67% of the plan’s funding. Over the past 28 years, the plan had an average total return of 8.75% – greater than the assumed 7.4% 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 9-30-2019, the pension fund assets totaled $927 million.
For more information, see the Annual Report Newsletter