Current Agenda
Pension News
Senate passes bill to boost Social Security benefits for some
The Senate voted overwhelmingly to pass legislation to boost Social Security benefits for more than 2 million Americans. The legislation will repeal two statutes that have reduced payouts to state and local police, firefighters, teachers and other public sector workers and their spouses for years. This will not affect Fort Lauderdale police and firefighters’ Social Security benefits, as both are covered by Social Security. The only possible impact (benefit) could be to a spouse who works in non-Social Security covered employment and also claims Social Security benefits under their spouse. The offset, called a Government Pension Offset) which reduced or eliminated Social Security benefits will now be eliminated for benefits received after December 2023. Read More
UnitedHealth Group sued by pension funds, including CalPERS, for securities fraud, insider trading
Major health insurer UnitedHealth Group and three of its senior executives were sued by pension funds California Public Employees' Retirement System, Sacramento (as lead plaintiff) and City of Hollywood (Fla.) Firefighters’ Pension Fund, for alleged securities fraud and insider trading. Originally filed on May 14 by Hollywood Firefighters, the lawsuit alleges that UnitedHealth Group sold tens of millions of dollars of their stock in October 2023 after the Department of Justice had re-opened an antitrust investigation into the company. Read More
Florida's pension system gets high marks from credit rating agency
A report by Fitch Ratings ranked Florida fourth best nationally for its defined benefit pension system's liabilities. The credit ratings agency's analysis measuring long-term liabilities said Florida's pension system in fiscal 2023 had the nation's third-lowest adjusted net pension liability to personal income ratio at 0.6% and the 12th lowest debt to personal income at 0.8%. Florida, according to the report, has $12.18 billion in direct debt, nearly $6.4 billion in reported net pension liability and nearly $9.3 billion in adjusted net pension liability. 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