City of Coral Springs, Florida Notes to Financial Statements Note 14.
Employee Retirement Plans (Continued)
Since the completion of the previous actuarial valuation, the following plan changes were adopted: • • •
The normal retirement age for employees hired after September 30, 2012, was changed from any age with 25 years of service to any age with 23 years of service. An alternative benefit payable to a surviving spouse or dependent children of a vested employee who dies prior to retirement other than in the line of duty was added to the plan. The maximum Deferred Retirement Option Plan (DROP) participation period was increased from five years to seven years and those employees who choose to enter the DROP with only 23 years of service and were hired after September 30, 2012, must continue to make the required employee contribution to the plan until they attain 25 years of service.
Firefighters’ Retirement Plan The Firefighters’ Retirement Plan (the Fire Plan) is a single-employer defined benefit plan, which covers all full-time certified firefighters. The Fire Plan was established by the City Commission with an effective date of December 31, 2002. The Fire Plan is also governed by certain provisions of Chapters 112 and 175, Florida Statutes. A Board of Trustees administers the Fire Plan. All costs of administering the Fire Plan are paid from plan assets. Benefits Provided General Employees’ Retirement Plan The General Plan provides retirement benefits as well as death and disability benefits. Benefits vest 50% after five years of continuous service, plus 5% for each additional year to 100% after 15 years. Employees who retire at age 55 with 10 years of service are entitled to a retirement benefit, payable monthly for life, in an amount equal to 3% of average monthly earnings times continuous service after January 1, 1991, and 2.5% of average monthly earnings times continuous service prior to January 1, 1991 for each year of credited service. Average monthly earnings are equal to 1/12 of the average annual earnings for the highest consecutive three years of the 10 full years’ immediately preceding actual retirement. Active members contributing 10% of earnings are also entitled to a 2% cost-of-living adjustment (COLA) beginning at retirement. On January 18, 2000, the City Commission approved a monthly stipend for future retirees of $200 from retirement to age 65 and $150 after age 65.
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