ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 73
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - 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 enacted an ordinance and established a 401
Defined Contribution Plan. Mass Mutual is the plan administrator. Payments are made biweekly. 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.
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Participants - There were 157 participants in the plan for the fiscal year ended
September 30, 2020.
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Compensation - Means total compensation paid during the plan year except bonuses.
Total compensation for fiscal year ended September 30, 2020 was $ 6,399,835.
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Forfeitures - Shall be applied to future employer contributions.
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Employer Contributions - Mandatory contribution of 6% of covered payroll is required
of the employer. Total contributions for fiscal year ended September 30, 2020, were
$383,988.
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Employee Contributions - A mandatory contribution of 4% is required by the
employee. The contributions are pre-taxed. Contributions for fiscal year ended
September 30, 2020, were $255,993.
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Normal Retirement - This is the date the participant attains age 62, and shall not
exceed the date the participant attains the age of 65.
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Early Retirement - None.
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Vesting Schedule - 0 through 4 years 0%, 5 years 100% or 100% at age 62.
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Distributions - Participants may request immediate distribution upon termination. If
not vested, participants receive only what they have contributed to the plan.
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