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Benefits October 10, 2003
S. Fla. Town Goes the DB Way
October 10, 2003 (PLANSPONSOR.com) - Even though
many employers have dumped their defined benefit pensions in
favor or a defined contribution program, one suburban Fort
Lauderdale community has decided to go the other
way.
Reported by Fred Schneyer
City commissioners in Lighthouse Point, Florida have set up a DB plan for their police officers and firefighters in place of their old DC plan, according to the South Florida Sun-Sentinel. Under the new plan, which officials said the employees had requested, the city will contribute 14.25% of salaries versus the 14% Lighthouse Point paid into the DC plan.
Officials said employees were nervous about declining
balances in their DC accounts over the past several years
because of the bear markets.
“The uncertainty of the market and fluctuations have made
them anxious in the last two years,” Mayor Fred Schorr told
the newspaper. “They have been requesting pensions more in
line with other county departments.”
Police officers and firefighters “are looking forward to
that security later in life, so it’s nice to have that
plan,” Police Chief Ross Licata said. “Now we have the
complete package here. Before this plan, we would lose the
best people to other departments with a defined benefit
program. This puts us on an equal playing field with
everyone else.”