Current Agenda

Pension News

Florida must stay the course to pay for promised pension benefits

Florida’s retirement system for public workers is estimated to be 17 years away from eliminating expensive pension debt. However, this result will depend significantly on market outcomes. A recession during that period could undo years of progress and drive-up costs for government budgets and taxpayers. Lawmakers in the Sunshine State need to stay the course and resist the temptation to add to pension promises while they remain several years away from being able to fund existing promises fully. Read More

Court revives Florida Power & Light fraud lawsuit

A federal appeals court revived a securities-fraud lawsuit that alleges Florida Power & Light and its parent company made misleading statements about issues such as funding "ghost" candidates to influence elections. The plaintiffs contend that NextEra and FPL had earlier made misleading statements about the issues. The lawsuit, whose lead plaintiffs are the City of Hollywood Police Officers Retirement System and the Pembroke Pines Firefighters & Police Officers Pension Fund, was filed in May 2023. Read More

Milliman: Public Pension Funding Improves Once More!

For the seventh straight month, the Public Pension Funding Index funded ratio improved in October, rising from 85.4% as of September 30, to 86.3% as of October 31. This reading eclipses the previous mark of 85.5% set back in 2021. Since liabilities are “fixed” and not factored into month-to-month measurements, only the return on the PPFI funds’ assets determines the change in the funded status/ratio. 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