I. Employee Retirement Plans – Defined Benefit Plans (Continued)

City Council · 2026-04-21 · agenda_item

This agenda item concerns the ongoing review of employee retirement plans for the City of West Melbourne, specifically the Police Officers' Pension Plan. The plan currently has 75 members, including active members, inactive members receiving benefits, and inactive members entitled to future benefits. The plan provides retirement, termination, disability, and death benefits based on age, years of service, and average final compensation. Details on normal retirement, early retirement, vesting schedules, disability provisions, pre-retirement death benefits, and cost of living adjustments are being reviewed. This item is under review by the City Council. The scope of work involves actuarial analysis, financial reporting, and potential adjustments to plan administration and benefits. This review could lead to opportunities for financial consultants, legal advisors specializing in pension law, and administrative support services. Engaging early in this review process allows businesses to understand the city's needs and potentially offer services before formal procurement begins.

plan membership

75

inactive plan members or beneficiaries currently receiving benefits

21

inactive plan members entitled to but not yet receiving benefits

13

active plan members

41

normal retirement age

55

years of credited service for normal retirement

10

years of credited service for normal retirement regardless of age

25

percentage of average final compensation per year of credited service

3.0 %

early retirement age

50

years of credited service for early retirement

10

reduction percentage for each year from normal retirement date for early retirement

3 %

years of credited service for vesting

6

vesting percentage after 6 years of credited service

20 %

additional vesting percentage per year thereafter

20 %

years of credited service for 100% vesting

10

age for unreduced benefit payable at later of age 55 or when 10 years of service attained

55

age for reduced benefits payable at later of age 50 or when 10 years of service attained

50

years of credited service for non-service incurred disability eligibility

10

minimum percentage of AFC for service incurred disability

42 %

minimum percentage of AFC for non-service incurred disability

25 %

years of credited service for pre-retirement death benefits vesting

10

percentage of accrued benefit paid as pre-retirement death benefit

50 %

percentage of accrued benefit paid as joint and survivor annuity form of benefit

50 %

cost of living adjustment percentage for members hired before January 1, 2011

2.0 %

minimum cost of living adjustment percentage for members hired before January 1, 2011

1.0 %