The Pension Plan is a defined benefit plan that uses a formula based on earnings and service to determine the monthly retirement benefit.
Earnings are determined by averaging the highest 2 of the last 5 years of employment and generally include base pay, longevity and under certain circumstances assignment pay.
Years of service are converted to a service accrual factor equal to 3% multiplied by the first 25 years of service and 2.5% for every year thereafter with a maximum accrual factor of 90%.
Service accrues from the pension entry date until the termination of employment.
The accrual of service credit is prorated right down to the termination date including fractional parts of months and years. It is unnecessary to work through an anniversary date to earn a full year of service credit or a full month to receive credit for that month.
Examples of retirement calculations and additional information can be found within the Summary Plan Description and Member's Handbook.
Refund of Pension Contributions - at any time before collecting retirement benefits, a terminated vested member can elect to withdraw their own personal pension contributions to the Pension Plan plus interest. Withdrawal of contributions results in the permanent and irrevocable forfeiture of all future retirement benefits.
Reemployment - new and additional service for Plan Members rehired by the City of Fort Lauderdale will not be added to their existing retirement benefit because the Pension Plan has been closed to new entrants. Instead their status is the same as other newly hired employees and they might be eligible to participate in the Defined Contribution Plan.