ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 81
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Plans
General Employees
The City has multiple pension plans for its employees. The general employees are currently
participating in two plans. Employees hired on or before December 31, 1995, participate
in the Florida Retirement System (FRS), a multiple-employer, cost-sharing public employee
retirement system. Employees hired after December 31, 1995, participate in a defined
contribution plan. The costs of administering the plans are paid for with investment
earnings.
City of Eustis Section 401 Defined Contribution Plan
In 1995, the State of Florida allowed a one-time opt-out of the Florida Retirement System
for all new employees. The City Commission elected to opt-out of FRS, and enacted an
ordinance that established a 401A Defined Contribution Plan. Empower Retirement is the
plan administrator. Payments are made bi-weekly. The effective date of the plan was
January 1, 1996.
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Eligibility - Full-time employees are enrolled immediately, and part-time employees
become participants of the plan after six months of service. There is no minimum age
requirement.
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Participants - There were 168 participants in the plan for the fiscal year ended
September 30, 2021.
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Benefit Compensation means total compensation paid during the plan year except for
bonuses. The compensation for the fiscal year ended September 30, 2021, was:
Defined Contribution Plan - $903,675; FRS - $1,277,841.
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Forfeitures - Shall be applied to future employer contributions.
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Employer Contributions – 6% of covered payroll is mandatory for general employees.
Total contributions for the fiscal year ended September 30, 2021, were: Defined
Contribution Plan - $393,221; FRS – $60,167;
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Employee Contributions - The general employee requires a mandatory contribution
of 4%. The contributions are pre-taxed. Contributions for the fiscal year ended
September 30, 2021, were: Defined Contribution Plan - $262,147; FRS - $8,943;
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Normal Retirement - This is the date the participant attains age 62 and shall not
exceed the date the participant reaches the age of 65.
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Early Retirement - None.
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Vesting Schedule - 0 through 4 years 0%, 5 years 100% or 100% at age 62.
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Distributions - Participants may request immediate distribution upon termination. If
not vested, participants receive only what they have contributed to the plan.
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