Current Agenda
Pension News
Florida State Pension Misses Fiscal 2025 Benchmark, Projects Full Funding in 17 Years
Public equities spurred the Florida Retirement System’s 10.3% return for the fiscal year that ended June 30, raising its asset value to $211.5 billion from $198.7 billion one year earlier. However, it underperformed its benchmark’s return of 11.1%. The pension fund also reported three- and five-year annualized returns of 9.44% and 9.72%, respectively, and 10-year returns of 8.01%. The Florida State Board of Administration estimated its funded ratio was 87% as of the end of its fiscal year, calculated using a market-based funded ratio. It also projected that under the current asset allocation, it expects the funded level to reach 100% by fiscal 2042. Read More
Public Pension Fund Returns Beat Their Benchmarks
U.S. public pension funds’ returns were well beyond their targets for the third consecutive year, reporting a median investment return of 11.3% for the fiscal year ended June 30. All of the major asset classes reported gains for the year ending June 30, 2025. The plans’ returns, which left their average assumed rate of return of 7.0% in the dust by 430 basis points, were led by foreign equities and domestic equities, which gained 17.7% and 15.3% respectively for the fiscal year. Read More
The Next Chapter for U.S. Corporate Pension Plans
U.S. corporate pension plans have quietly entered a new era. After years of underfunding and equity-heavy allocations, most large plans are approaching fully funded status or better, driven by rising interest rates, strong equity markets, and disciplined liability management. 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