Current Agenda
Pension News
February 7 Morning Newscast (news cast)
On this morning’s newscast, Matt Lincoln reported that public employees make NO contribution to their traditional defined benefit pension plan. This is incorrect. In almost every instance in Florida municipalities, employees make a MANDATORY contribution, anywhere from 3% up to 12%. Private sector DB plans normally do not require employees to contribute, but only about 15% of private companies offer these plans as most have switched to a 401 account. Read More
Florida's pension plan sues Target, contends it misled investors
Florida’s multi-billion-dollar pension plan launched a lawsuit against major retailer Target on Thursday, asserting the company misled investors about its diversity and inclusion efforts, leading to a LGBTQ+ Pride marketing campaign that sparked a consumer backlash. Target has already been sued over the campaign, but this latest round of litigation comes with the full support of Gov. Ron DeSantis, as well as other top Republican officials in the nation’s third-largest state. “ Read More
DB Pensions Are NOT Ponzi Schemes!
I recently stumbled onto an article that was highlighting the impending pension crisis (disaster) that is unfolding in Florida. The author’s primary reason for concern is the fact that there are now more beneficiaries collecting (659,333) than workers paying in (459,428). Briefly mentioned was the fact that the pension system currently has a funded ratio of 83.7% up from 82.4% last year. The fact that there are more recipients than those paying into the system is irrelevant. DB pension systems are not Ponzi Schemes, which in nothing more than a fraudulent vehicle that relies on a continuous influx of new “investors” (substitute plan participants) to pay the existing members of the pool. 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
- 728 – Active members
- 1,301 – Retired members and beneficiaries
- 2,029 – 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 71% of the plan’s funding. Over the past 33 years, the plan had an average total return of 8.21% – 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 9-30-2023, the pension fund assets totaled $1. 037 billion.
For more information, see the Annual Report Newsletter