The Town negotiated a plan freeze for both the firefighters’ plan and the general employees’ plan effective September 30, 2013. Subsequently the Police pension plan was frozen effective February 1, 2014. In lieu of the defined benefit plan, the police officers and general employees opted for a Town sponsored defined contribution (401a) plan and the firefighters opted to join the Florida Retirement System (FRS). At that time there was a clear intent to consolidate the three Board of Trustees into one, to more efficiently administer the plans. Consolidation of the plans provides for lower fees, reduced plan expenses, provides better investment opportunities, and reduces staff time. The Consolidated Board of Trustees was formed October 2014 with a goal to consolidate the three plans by October 1 2015.
All three pension plans were frozen knowing that the impact of the freeze would cause an increase in the Town’s pension contributions over the next several years with a negative budgetary impact. Freezing the plan means that employees will no longer accrue years of service after the date of freeze, which is used to calculate their monthly retirement benefit. The accrued benefits they have earned prior to this date will remain and the pension plans will continue to exist until the final benefit payments are made.
As a result of the freeze the employees no longer make contributions to the Plan and the State premium revenue sharing money ceases. This among other actuarial assumption changes will require the Town’s annual contributions to rise over the next several years and then decrease gradually over the remaining life of the Plan.
The Longboat Key Consolidated Pension Retirement System is required to provide certain information in accordance with F.S. Chapter 112.664 shown below.
- October 1 2017 Valuation (Consolidated)
- 2017 GASB67 and GASB68 Reporting - General
- 2017 GASB67 and GASB68 Reporting - Fire
- 2017 GASB67 and GASB68 Reporting - Police
In addition to these documents, the Town must also link directly to the summary pages for each legacy plan on the Florida Division of Retirement found below: