ACFR FY 2022 FINAL BOOK - Flipbook - Page 86
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans
General Employees
The City has multiple pension plans for its employees� The general employees are currently participating in two plans� Employees hired on or before December 31, 1995, participate in the Florida
Retirement System (FRS), a multiple-employer, cost-sharing public employee retirement system�
Employees hired after December 31, 1995, participate in a defined contribution plan� The costs of
administering the plans are paid for with investment earnings�
City of Eustis Section 401 Defined Contribution Plan
In 1995, the State of Florida allowed a one-time opt-out of the Florida Retirement System for all new
employees� The City Commission elected to opt-out of FRS, and enacted an ordinance that established a 401A Defined Contribution plan� Empower Retirement is the plan administrator� payments
are made bi-weekly� The effective date of the plan was January 1, 1996�
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Eligibility - Full-time employees are enrolled immediately, and part-time employees become
participants of the plan after six months of service� There is no minimum age requirement�
Participants - There were 171 participants in the plan for the fiscal year ended September 30,
2022�
Benefit Compensation means total compensation paid during the plan year except for bonuses�
The compensation for the fiscal year ended September 30, 2022, was: Defined Contribution plan
- $6,825,858; FRS - $347,467�
Forfeitures - Shall be applied to future employer contributions�
Employer Contributions - 6% of covered payroll is mandatory for general employees� Total
contributions for the fiscal year ended September 30, 2022, were: Defined Contribution plan $441,943; FRS - $45,276;
Employee Contributions - The general employee requires a mandatory contribution of 4%� The
contributions are pre-taxed� Contributions for the fiscal year ended September 30, 2022, were:
Defined Contribution plan - $265,753; FRS - $7,723;
Normal Retirement - This is the date the participant attains age 62 and shall not exceed the
date the participant reaches the age of 65�
Early Retirement - None�
Vesting Schedule - 0 through 4 years 0%, 5 years 100% or 100% at age 62�
Distributions - participants may request immediate distribution upon termination� If not vested,
participants receive only what they have contributed to the plan�
Miscellaneous - Loans are allowed under the 401A plan� However, the amount is limited to the
number of the participants’ contributions and a minimum of $1,000� Repayment is limited to five
years and is repaid bi-weekly via payroll deductions� Transfers from other qualified plans are
allowed�
Florida Retirement System
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General Information - The City participates in the Florida Retirement System (FRS)� As provided
by Chapters 121 and 112, Florida Statutes, the FRS offers two cost-sharing, multiple-employer
defined benefit plans administered by the Florida Department of management Services, Division
Annual Comprehensive Financial Report | September 30, 2022