RETIREMENT BENEFITS

NORMAL RETIREMENT

You are eligible to retire upon the completion of 20 years of creditable Police or Fire service and be a member of the Police & Fire Retirement System. Also a member who has completed 10 or more years of creditable service and has reached the age of 55 is eligible to retire. Upon retirement you will receive pension benefits on the first of each month continuing for your lifetime.  The Plan is a defined benefit plan and uses the following formulas to define the amount of your benefit.

Police Officers and Firefighters, except those otherwise specified below, will have a monthly benefit equal to 3.38% of your average monthly earnings for all to a maximum accrual of 81%.  Firefighters also receive a 2% bonus at retirement if they were hired prior to December 11, 1993.

Firefighters hired prior to December 11, 1993 may have elected to remain in the old plan. Members that have made this election will receive a monthly pension benefit of 3% of final average monthly earnings multiplied by years of service up to 20, plus 2% of final average monthly earnings multiplied by years of service beyond 20 years to a maximum accrual of 100%.  Firefighters also receive a 2% bonus at retirement if hired prior to December 11, 1993.

Final average monthly earnings can be found by adding your highest 2 years earnings and dividing the sum by 24 months.  Earnings include base wages, assignment pay, academic incentive pay, upgrade pay and longevity. Police Officers earnings shall include up to 40 hours of overtime per calendar year

Years of service are accrued from your pension date of hire until you enter into the DROP or employment terminates. After attaining membership in the Plan, service continues to accrue during periods in the United States armed force, vacation and authorized leaves of absence, providing member contributions have been paid.  

Benefits are subject to any limitations set forth by the Internal Revenue Code for qualified pension plans.  For members hired on or after January 1, 1980, Florida Statutes stipulates normal retirement benefits may not exceed 100% of final average earnings.

Effective January 1, 2000, a member has the option of various forms of retirement benefit payment.  These optional benefit payments will be in accordance with the option selected at the time of retirement.         

DROP RETIREMENT

Police Officers and Firefighters are eligible to enter the Deferred Retirement Option Plan (DROP) upon attaining 20 years of service. . This plan allows you to retire from the City of Fort Lauderdale for pension purposes while allowing you to continue to work in your current position for a period of up to five years. All benefits that you are entitled to as an employee remain the same except for your pension. In order to enter the DROP plan, you must notify the Pension Office at least ninety (90) days prior to your desired entrance into the DROP plan. Upon making the election to enter the DROP plan, your monthly retirement benefit will be held for you by the System in a separate account until you terminate your employment with the City of Fort Lauderdale.  Your DROP account will earn simple interest at the actuarially assumed rate of return for the fund, currently seven and three quarters (7.75) percent. If you desire to terminate your DROP account you need to notify the Pension Office 30 days prior to your desired date of termination. Minimum participation in the DROP Plan shall be for a period of no less than two months.

 BAC-DROP RETIREMENT

A member eligible for Normal Retirement may have a portion of his normal retirement benefit paid in a lump sum.  Under the provisions of the Benefit Actuarially Calculated Deferred Retirement Option Program (BAC-DROP) a member may receive a lump-sum distribution of up to thirty-six (36) months of normal retirement benefits.  The monthly retirement benefit would then be actuarially reduced by the lump sum BAC-DROP distribution. 

No member who elects the DROP Retirement is eligible to participate in the BAC-DROP.   

DEATH BENEFITS AFTER RETIREMENT

SURVIVING SPOUSE AND ELIGIBLE CHILDREN

STANDARD BENEFIT:  If you are married at time of death, your spouse will receive 100% of your pension for one year after your death and 60% of your pension thereafter, until the earlier of death or remarriage.

In addition, each child under the age of 18 will receive 20% of your pension until marriage, death or age 18.  The maximum payment to a surviving spouse and children is 100% of your pension.

If, upon the death of your spouse, there are no eligible children, and the amount of pension that has been paid does not equal the amount of money that you yourself contributed to the Plan, the difference will be paid to the contingent beneficiary you named or your estate.

Optional Forms of Payment*

Life of Member:  This option provides payments to you as long as you live.  If you should die before you have received an amount equal to your contributions to the Plan, payments will continue to your beneficiary until your contributions have been used up.

100% Joint & Survivor:  This option provides a monthly payment to you as long as both you and your beneficiary are living.  After the death of either you or your beneficiary, a monthly payment will continue for the life of the remaining person. 

75%, 66-2/3 and 50% Joint & Survivor:  This option provides a monthly payment to you as long as both you and your beneficiary are living. After the death of either you or your beneficiary, a reduced monthly will continue for the life of the remaining person. 

*These options provide no benefits to dependent children unless chosen specifically as the beneficiary.  The Joint & Survivor benefits are based on the beneficiary named and are payable only to this beneficiary.  If you wish to change your beneficiary at any time, the current beneficiary must be living and new amounts will be recalculated for the new beneficiary chosen.                                                            

*A DROP participant shall not be eligible for disability benefits offered under this Plan. 

SERVICE INCURRED DISABILITY

If you suffer an injury or illness, which is determined to be service-connected, and the injury or illness either physically or mentally prevents you from performing the regular and continuous duties of your job with the City, you may be eligible for disability benefits.

The Board approves or denies claims for disability benefits based on the facts in the situation and evidence provided by a medical board consisting of 3 or more doctors selected by the Board.

Service incurred disability benefits are equal to 65% of your monthly earnings, beginning on the 91st day you are off the job. If you receive Workers Compensation, your pension may be reduced to the extent allowed by law. This benefit is payable for life or recovery from your disability. 

If your claim is denied, the written notice you will receive will give the specific reasons for the denial.  You may ask for a formal hearing before the Board to present evidence or make statements relevant to the Board's review of its decision.  You have the right to review all pertinent documents.  Within 30 days following the hearing, you will receive written notice of the Board's decision.

There may be additional benefits payable under Florida Statues and Federal Laws for Police Officers or Firefighters injured in the line of duty.  These benefits are not included in this City Plan. 

NON-SERVICE INCURRED DISABILITY BENEFITS

If you suffer an injury or illness, which is determined to be a non-service connected, and the injury or illness, either physically or mentally, prevents you from performing your regular and continuous duties, or any other gainful employment, you may be eligible for disability benefits.

The Board approves or denies claims for disability benefits based on the facts in the situation and evidence provided by a medical board consisting of 3 or more doctors selected by the Board.

Non-service incurred disability benefits are equal to 50% of your monthly earnings, beginning on the 91st day you are off the job.  If you receive Social Security disability benefits, your monthly pension is reduced by the amount of those benefits.  During periods of approved non-service connected disability, you must continue contributing to the Pension Plan at the rate you were paying when you became disabled.

Disability benefits will be paid until your death, your recovery or you become eligible for retirement benefits.  When you become eligible for retirement, your pension will convert to a retirement benefit.  Retirement benefits will be computed on your earnings at date of disability and years of service, including the period of disability.

* A DROP participant is not eligible for disability benefits offered under this Plan.

CHAPTER 175/185 DISABILITY RETIREMENT

In lieu of the above disability provisions, you may elect to have your disability application administered pursuant to the terms respecting Chapter 175 of the Florida Statues, Disability Retirements. 

                                   DEATH BENEFITS, SERVICE INCURRED

If you die before retirement from causes related to your job, your spouse will receive a monthly payment until his/her death, equal to 50% of your earnings at the date of your death.  An additional 10% will be paid for each child under the age of 18 to a maximum total payment of 80%.  Your children will receive benefits until the earlier of age 18, marriage or death.  If your spouse were to remarry, they may be eligible to continue their benefit under certain circumstances.  If Firefighters’ are not married and they do not have unmarried children under the age of 18, a 10 year benefit will be paid to their designated beneficiary.

If you had a spouse and/or children under 18 at the time of your death, and the spouse and/or children become ineligible before payments have been made for 96 months, the balance will be paid to the contingent beneficiary you named.  If the last named beneficiary dies before 96 months have been paid, benefits will be paid to your estate.

There may be additional benefits payable under Florida Statues and Federal Laws for Police Officers or Firefighters killed in the line of duty.  These benefits are not included in this City Plan. 

DEATH BENEFITS, NON-SERVICE INCURRED

If a member with at least 10 years of creditable service dies prior to retirement unrelated to your job, his or her beneficiary is entitled to benefits otherwise payable at normal retirement.

Your beneficiary may elect to receive a monthly payment equal to 50% of your earnings at the date of death.  The payments will be made for 96 months, or until the death of the beneficiaries you name. If the last named beneficiary dies before 96 months have been paid, benefits shall be paid to your estate.

EXCLUSIONS FOR DISABILITY AND DEATH

Disability benefits or death benefits will not be paid if the Pension Board determines that the following conditions exist:

a) That disability or death resulted from an intentionally self-inflicted injury within the first two years of employment;

b) That disability or death was the direct result of habitual, intentional use of alcohol, narcotics or drugs without an intervening cause

c) That disability or death resulted from unlawful participation or unlawful involvement in riots, insurrection or assembly

d) That disability or death resulted from participation or involvement in the commission of a felony as defined by the laws of the State of Florida, or the United States of America; or

e) That disability or death resulted from or is an aggravation or recurrence of a pre-existing condition.                                    

UNDER THE FLORIDA STATUES 175/185 DISABILITY RETIREMENT, ADDITIONAL EXCLUSIONS APPLY

a) That disability resulted from serving in the armed forces.

b) That disability for Police Officers resulted from employment other than the City.     

VESTED RETIREMENT

If you leave employment with the City after completing 10 or more years of service you have a vested deferred retirement benefit.  The monthly pension is calculated as a Normal Retirement.  This benefit is payable when you would have completed 20 years of service. If you should die prior to reaching your normal retirement date, your contributions plus three (3) percent interest shall be paid in a lump sum to your designated beneficiary.

After 15 years of service, if you should die prior to commencement of your retirement, your spouse and eligible children will be entitled to survivorship benefits, commencing on what would have been your normal retirement date.

At any time before retirement, a terminated vested member can choose to withdraw contributions.  If you choose to withdraw your contributions, you forfeit your right to any future benefits.

COST OF LIVING ADJUSTMENT AFTER RETIREMENT

The Pension Ordinance currently provides for a cost of living increase on July 1, of each year provided that you are retired one year at July 1. Cost of living increases are added to your monthly benefit, excluding any other cost of living adjustment. The increase is based on the percentage increase in the United States Consumer Price Index or the actuarially present value of "excess gains" of the Plan.  This increase may not exceed five (5) percent unless approved by the City Commission. The current Cost of Living Ordinance sunsets on July 15, 2008 unless readopted by the City Commission. The Ordinance allows various methods to determine how the COLA is disbursed.  The Board determines which method to use. 

TRANSFER FROM GENERAL EMPLOYEES' RETIREMENT SYSTEM

If you were previously employed as a General Employee in Ft. Lauderdale (and did not forfeit service by withdrawing your contributions), your retirement benefit will be computed in accordance with the Police Officers’ & Firefighters formula for periods of service as a police officer or firefighter and in accordance with the General Employees' formula for periods of service in the General Employees Retirement System which will be computed at the prevailing rate at the time of your transfer from General Employees to Police & Firefighter' Retirement System.

TRANSFER TO GENERAL EMPLOYEES RETIREMENT SYSTEM

If you are leaving employment as a police officer or firefighter to become a general employee, you may transfer credit for years of service or you may elect to withdraw your contributions plus 3% interest compounded annually and forfeit credit for those years of service.

Nonassignability:

Please note that you may obtain further detail explanations in our Ordinance as well as checking the Florida State Statues Chapter 175, 185 & 112.