Current Agenda
Pension News
A New Bill Aims to Fix Social Security by Eliminating Taxes on Benefits
A group of lawmakers wants to eliminate taxes on Social Security benefits. The bill would eliminate federal taxes on benefits at all income levels. The You Earned It, You Keep It Act would also bring in more tax revenue by raising the cutoff point when Americans are no longer subject to payroll taxes. Currently, the 6.2% Social Security tax applies to a max of $168,600 of wages. The bill would add Social Security taxes on earnings above $250,000. Read More
U.S. retirement plans recover half of 2022 losses amid no-show recession
U.S. retirement plans clawed back roughly half the ground lost the year before when the start of a Federal Reserve rate hiking cycle sent high-flying stock and bond prices tumbling. The latest annual survey of the 1,000 largest U.S. retirement plans showed their combined assets rebounding 7.1% to $13.02 trillion over the 12 months through Sept. 30, following a record plunge of 13.9% the previous year. Read More
Tax package in the Florida House could put Jacksonville city budget back in pre-pension reform chaos
Jacksonville’s state lawmakers are worried pension reform approved by voters in 2016 could be at risk, potentially exposing the city to massive budget shortfalls. It’s all due to 15 words in the Florida House’s 58-page tax package. The small change could cause the city to lose up to 34 years’ worth of tax revenue it was counting on to sure up the pension fund for current and retired police, firefighters and other city employees. A key piece of the reform plan was levying a half penny sales tax as long as 44 years to sure up the pensions and free up other city revenues for other purposes like infrastructure. But the provision in the tax package would require any sales tax levied to pay for municipal retirement plans to sunset ten years after initially being approved by voters. 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