ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 75
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Plans (Continued)
Special Risk class members (sworn law enforcement officers, firefighters, and
correctional officers) who retire at or after age 55 with at least six years of credited
service, or with 25 years of service regardless of age, are entitled to a retirement
benefit payable monthly for life, equal to 3.0% of their final average compensation
based on the five highest years of salary for each year of credited service.
Senior Management Service 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 2.0% of their final average
compensation based on the five highest years of salary for each year of credited
service.
Elected Officers’ 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 3.0% (3.33% for judges and justices) of their
final average compensation based on the five highest years of salary for each year of
credited service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is
extended to eight years of credited service for all these members and increasing
normal retirement to age 65 or 33 years of service regardless of age for Regular,
Senior Management Service, and Elected Officers’ class members, and to age 60 or
30 years of service regardless of age for Special Risk and Special Risk Administrative
Support class members. Also, the final average compensation for all these members
will be based on the eight highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member initially enrolled
in the Pension Plan before July 1, 2011, and all service credit accrued before July
1, 2011, the annual cost-of- living adjustment is three percent per year. If the
member initially enrolled before July 1, 2011, and has service credit on or after
July 1, 2011, there is an individually calculated cost-of-living adjustment. The
annual cost-of-living adjustment is a proportion of three percent determined by
dividing the sum of the pre-July 2011 service credit by the total service credit at
retirement multiplied by three percent. Plan members initially enrolled on or after
July 1, 2011, will not have a cost-of-living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer
receipt of monthly retirement benefit payments while continuing employment with a
FRS employer for a period not to exceed 60 months after electing to participate.
Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There
are no required contributions by DROP participants.
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