ACFR FY 2023 Final - Flipbook - Page 91
City of Eustis, Florida
FINANCIAL SECTION
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans
General Employees
The City has multiple pension plans for its employeesÿ General employees are currently participating in two plansÿ Employees hired on or before December 31, 1995, participate in the Florida
Retirement System (FRS), a multiple-employer, cost-sharing public employee retirement systemÿ
Employees hired after December 31, 1995, participate in a deoned contribution plan. The costs of
administering the plans are paid for with investment earningsÿ
City of Eustis Section 401 Deoned Contribution Plan
In 1995, the State of Florida allowed a one-time opt-out of the Florida Retirement System for all new
employeesÿ The City Commission elected to opt-out of FRS, and enacted an ordinance that established a 401A Deoned Contribution Plan. Empower Retirement is the plan administrator. Payments
are made bi-weeklyÿ The effective date of the plan was January 1, 1996ÿ
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Eligibility - Full-time employees are enrolled immediately, and part-time employees become
participants of the plan after six months of serviceÿ There is no minimum age requirementÿ
Participants - There were 159 participants in the plan for the oscal year ended September 30,
2023ÿ
Beneot Compensation means total compensation paid during the plan year except for bonusesÿ
The compensation for the oscal year ended September 30, 2023, was: Deoned Contribution Plan
- $7,168,495; FRS - $333,098ÿ
Forfeitures - Shall be applied to future employer contributionsÿ
Employer Contributions - 6% of covered payroll is mandatory for general employeesÿ Total
contributions for the oscal year ended September 30, 2023, were: Deoned Contribution Plan $429,035; FRS - $49,660;
Employee Contributions - General employees require a mandatory contribution of 4%ÿ The
contributions are pre-taxed. Contributions for the oscal year ended September 30, 2023, were:
Deoned Contribution Plan - $286,023; FRS - $6,177;
Normal Retirement - This is the date the participant attains age 62 and shall not exceed the
date the participant reaches the age of 65ÿ
Early Retirement - Noneÿ
Vesting Schedule - 0 through 4 years 0%, 5 years 100% or 100% at age 62ÿ
Distributions - participants may request immediate distribution upon terminationÿ If not vested,
participants receive only what they have contributed to the planÿ
Miscellaneous - Loans are allowed under the 401A planÿ However, the amount is limited to the
amount of the participants9 contributions and a minimum of $1,000. Repayment is limited to ove
years and is repaid bi-weekly via payroll deductions. Transfers from other qualioed plans are
allowedÿ
Florida Retirement System
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General Information - The City participates in the Florida Retirement System (FRS)ÿ As provided
by Chapters 121 and 112, Florida Statutes, the FRS offers two cost-sharing, multiple-employer
deoned beneot plans administered by the Florida Department of Management Services, Division
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Annual Comprehensive Financial Report | September 30, 2023
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