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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2010 NOTE 16 - PENSION PLANS Florida Retirement System Plan Description: The County's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Management Services. The FRS is noncontributory for all members; all contributions are made by the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of credible service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service or thirty years of service regardless of age. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of - service credit where average compensation is computed as the average of an individual's five highest years of earnings. For those employees who elect participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of service and there is no "normal retirement age". These participants receive a defined contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed five years after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines contribution rates for the various membership classes of the FRS. The FRS issues a publicly available financial report that includes financial statements, ten-year historical trend information and other required supplementary information. That report may be obtained by writing to the Florida Department of Management Services, Division of Retirement, Attention: Research, Education, & Policy Section, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the website at www.dms.myflorida.com.