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Directory
home Under Florida law, e-mail addresses are public
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Benefits of the Plan are financed by contributions that are paid into the Plan and by investment earnings generated by investment of the Plan. All eligible active employees and the City will make periodic contributions to the Plan. Employee Contributions The amount you contribute to the Plan depends on when you were hired. The Employer "picks up" this contribution through a salary reduction of your base pay. Beginning January 1, 1991, your contributions to the Plan are made on a "before tax" basis. The Plan does not permit additional, voluntary employee contributions (other than the limited elections discussed in the preceding sections and sections below). If you were hired prior to June 8, 2011 or after December 17, 2020, your contribution rate is 10% of your covered salary. Contributions at a 10% rate will earn Tier 1 service credits. (see heading entitled Retirement Benefits for discussion of Tiered Benefit Levels). Your Covered Salary is the amount of your compensation including base pay and regular longevity wages, but excluding overtime, bonuses and any other non-regular payments. Covered Salary will be subject to the limitations set forth in Section 401(a)(17) of the Internal Revenue Code (as adjusted periodically for cost-of-living) in any one year. The adjusted pay limit for 2022 is $305,000. If you were hired between June 8, 2011 and December 17, 2020, your contribution rate was 7% of your covered salary for the period from your hire date until December 17, 2020. Beginning on December 17, 2020, your contribution rate is 10% of your covered salary. Contributions at a 7% rate will earn Tier 2 service credits. Contributions at a 10% rate will earn Tier 1 service credits. (see heading entitled Retirement Benefits for discussion of Tiered Benefit Levels). Employees who were hired between June 8, 2001 and December 17, 2020 were permitted to elect to upgrade their Credited Service from Tier 2 to Tier 1 benefits for the period from their hire date up to December 17, 2020. Eligible employees must have formally elected to do so no later than January 31, 2021. To earn the upgraded service credits, the full 3% difference in contribution rates for that period must be paid into the Plan within a permitted timeframe from that date. The timeframe for making those contributions is the earlier of the employee's retirement, entry into DROP, termination of service or a time period extending after January 31, 2021 equal to the time from the employee's hire to December 17, 2020. If the full amount is contributed within the timeframe the employee will earn Tier 1 benefits. If the full contribution is not paid within the timeframe, any difference in contribution rates made will be refunded, without interest, and the employee will earn Tier 2 benefits for those service credits instead. For example, an employee hired on December 17, 2016 who elected to upgrade service credits would have to contribute an amount equal to 3% of covered salary (for the four years from December 17, 2016 to December 17, 2020). To earn Tier 1 benefits for those four years of service, the employee would have to contribute that amount no later than January 31, 2025 (four years from January 31, 2021) or the date of retirement, entry into DROP or termination of service, whichever is earlier. Otherwise, the employee will earn Tier 2 benefits for those four years of Credited Service instead. If you are an Elected Official or Appointee, you will not contribute to the Plan. The City will contribute the required percentages into the Plan on behalf of Elected Officials and Appointees. Your contribution will cease upon your retirement, entry into the Deferred Retirement Option Plan (DROP), death, disability or employment termination. Your Employer's Contributions The City of Pompano Beach must periodically contribute an amount determined by the Plan's actuary to be sufficient, along with your contribution, to systematically fund the benefits under the Plan. The City's contribution will vary depending upon the actuarial experience of the Plan. Additional Contributions to Round Up Credited Service. Effective October 1, 2021, employees may elect to “round up” their Credited Service to the next full year of service. Employees electing to round up their Credited Service must contribute the full cost of the time they are electing to add to their Credited Service. If requested, the Pension Office will provide the employee the required dollar amount of the total additional contribution at the time they apply for retirement. The additional contribution must be paid in full no later than their retirement date, DROP entry or separation from service. Refund of Contributions If you terminate employment, other than by reason of retirement, disability or death, you may be entitled to a refund of the contributions that you have made into the Plan. You may elect to immediately receive a refund of your own contributions, plus three (3) percent interest per annum, even if you are not yet eligible to receive a retirement benefit. Please note that the election to take a refund of your contributions with interest would be in lieu of any and all future benefit payments from the Plan, if applicable. If you terminate employment before you are vested you will receive a refund of your own contributions, plus three (3) percent interest per annum. Please note, however, that you must have at least one year of Credited Service to receive the three percent interest. (See Vesting section below) If you are an Elected Official or Appointee, you are not entitled a refund of the contributions made by the City on your behalf. The taxable portion of any refund you receive is subject to an automatic twenty (20) percent withholding for federal income tax purposes. This tax may be avoided, however, if you roll the taxable portion over to a traditional Individual Retirement Account (IRA) or another qualified employer plan. This rollover will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made directly by the Plan to your chosen IRA or other qualified employer plan. TO REQUEST A REFUND OF CONTRIBUTIONS
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