ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 74
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Plans (Continued)
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Miscellaneous - Loans are allowed under the 401 plan; however, the amount is limited
to the amount of the participants contributions and a minimum of $1,000. Repayment
is limited to a maximum of 5 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 provides two cost
sharing, multiple employer defined benefit plans administered by the Florida
Department of Management Services, Division of Retirement, including the FRS
Pension Plan (“Pension Plan”) and the Retiree Health Insurance Subsidy (“HIS Plan”).
Under Section 121.4501, Florida Statutes, the FRS also provides a defined
contribution plan (“Investment Plan”) alternative to the FRS Pension Plan, which is
administered by the State Board of Administration (“SBA”). The FRS provides
retirement and disability benefits, annual cost-of-living adjustments, and death
benefits to plan members and beneficiaries. Benefits are established by Chapter 121,
Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the
law can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes
financial statements and required supplementary information for the FRS. The latest
available report may be obtained by writing to the State of Florida Division of
Retirement, Department of Management Services, P.O. Box 9000, Tallahassee,
Florida 32315-9000, or from the Web site:
www.dms.myflorida.com/workforce_operations/retirement/publications.
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Plan Description - The Pension Plan is a cost-sharing multiple-employer defined
benefit pension plan, with a Deferred Retirement Option Program (“DROP”) for
eligible employees.
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Benefits Provided - Benefits under the Pension Plan are computed on the basis of
age, average final compensation, and service credit. Pension Plan members enrolled
before July 1, 2011, regular class members who retire at or after age 62 with at least
six years of credited service or 30 years of service regardless of age are entitled to a
retirement benefit payable monthly for life, equal to 1.6% of their final average
compensation based on the five highest years of salary, for each year of credited
service. Vested members with less than 30 years of service may retire before age 62
and receive reduced retirement benefits.
Special Risk Administrative Support class members who retire at or after age 55 with
at least six years of credited service or 25 years of service regardless of age are
entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final
average compensation based on the five highest years of salary, for each year of
credited service.
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