Current Agenda
Pension News
What Might SS Recipients Get in 2026’s COLA
With the demise of the defined benefit plan for many workers in the US private sector, Social Security benefit payments become ever more important for a greater percentage of the American retirees and those with disabilities. We’ll get the official word on the 2026 COLA sometime in October, but early estimates are forecasting a 2.5% increase for next year. Nearly 70 million Americans, rely on SS for most of their retirement assets. With 50% of retirees using SS for more than 50% of their retirement income and another 25% in which SS makes up 90% or more of their retirement income. Read More
BlackRock warns Republicans and Democrats are ‘politicizing’ pension funds
BlackRock pushed back against pressure from elected officials and defended its track record as a fiduciary, warning that interference by lawmakers from both parties could hurt pension funds. BlackRock’s response follows letters from Republican and Democratic policymakers over the past month that question how the firm interacts with public companies on behalf of its clients. Read More
Funding gap in DB plans closes in after years of pension deficits
A decade and a half after the global financial crisis (GFC), defined benefit (DB) plans across the are recording funding surpluses, marking a reversal from persistent deficits that weighed on plan sponsors. The change is driven by the sharp rise in interest rates and bond yields since 2022, which increased discount rates and lowered the present value of liabilities. Even as credit spreads sit near 10-year lows, absolute yields remain well above pre-pandemic levels, helping DB plans achieve stronger funding positions. 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