City of Coral Springs, Florida Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued)

Fire Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan, as calculated by the plan actuary, are recognized as revenue when due and the City has made a formal commitment to provide the contributions Contributions for the year ended September 30, 2022, totaling $7,831,161, were made in accordance with actuarially determined contribution requirements determined through an actuarial valuation performed on October 1, 2020. Contributions for the year ended September 30, 2022, were $4,646,357 for the employer and $1,347,069 for the employee. In addition, contributions in the amount of $1,837,735 were received from the State of Florida in accordance with Florida Statutes. These on-behalf payments were also recognized as revenue and expenditures in the General Fund

Deferred Retirement Option Plan. The Deferred Retirement Option Plan (DROP) is available to all Fire Plan participants who have attained their normal retirement age. Upon electing to participate in the DROP, members are considered to have retired for pension purposes of the pension plan but continue to remain in active employment with the City. Their benefits accumulate in a DROP account and continue to accrue interest until they retire from the City at which time DROP benefits will be paid. Maximum duration of participation is five years, and the election is irrevocable. The balance held by the Fire Plan on September 30, 2022 pursuant to the DROP is $5,871,716.

City of Coral Springs, Florida

Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued) Net Pension Liability (Asset)

The following schedule presents the change in net pension liability (asset) for the fiscal year ended September 30, 2022:

Net position restricted for future benefits. Florida State Statute Chapter 175 establishes minimum benefits and standards for all municipal fire pension plans. The statute governs the allocation of insurance premium excise taxes levied to provide a partial funding source for these plans. In accordance with the provisions of the firefighters’ collective bargaining agreement, excess insurance premium excise taxes will be used to fund the firefighters’ Share Plan (the Share Plan), a defined contribution component of the Plan. The balance in the Share Plan on September 30, 2022, is $3,854,405. The Plan also has accumulated DROP contributions of $5,871,716 at year end.