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Indian River County, Florida
<br />Sheriff
<br />Notes To Financial Statements
<br />Year Ended September 30, 2014
<br />NOTE 5 — PENSION PLAN
<br />Florida Retirement System
<br />Plan Description: The Sheriffs employees participate in the Florida Retirement System (FRS), a cost-
<br />sharing, multiple -employer public employee retirement system, administered by the Florida Department
<br />of Management Services. Effective July 1, 2011, the FRS became a contributory plan for all members,
<br />except DROP participants, whereby members contribute 3% and employers pay a rate based upon each
<br />member's employment class (regular class 7.37%, special risk 19.82%, senior class 21.14%, DROP
<br />class 12.28%, and elected official class 43.24%).
<br />Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
<br />contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
<br />retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
<br />enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
<br />years of service, regardless of age. Under the Pension Plan, early retirement is available before reaching
<br />normal retirement age and will be subject to an early-retirement reduction of 5% for each year your age
<br />at retirement is under your normal retirement age. For those employees who elect participation in the
<br />Investment Plan rather than the Pension Plan, vesting occurs after one year of service. Participants have
<br />access to the full value of their vested account balance when they leave FRS employment, regardless of
<br />age. These participants receive a defined contribution for self-direction in an investment product with a
<br />third party administrator selected by the State Board of Administration.
<br />Retirement benefits are determined by age, years of service, the average of the highest 5 or 8 fiscal years
<br />of pay, membership class and the payment option selected at retirement. For further information
<br />concerning the Florida Retirement System and contribution rates, please read the County -wide note on
<br />pension plans.
<br />Employer contributions to the FRS for the fiscal years ended September 30, 2012, 2013, and 2014 were
<br />equal to 11.30%, 12.70%, and 15.35% of the annual covered payroll. Employer contributions to the FRS
<br />for the fiscal years ended September 30, 2012, 2013, 2014 were $2,544,542, $2,835,772, and $3,490,547
<br />respectively. Employee contributions for the fiscal years ended September 30, 2012, 2013 and 2014
<br />were $629,659, $615,894, and $606,411 respectively. Both employer and employee contributions were
<br />equal to 100% of the required contribution for each year.
<br />NOTE 6 — OTHER POSTEMPLOYMENT BENEFITS
<br />The Sheriff participated in the Indian River County Other Postemployment Benefits Trust (IRCOT).
<br />The Sheriffs 2014 annual contribution of $1,101,833 was funded by the Board of County
<br />Commissioners as part of a total contribution determined by the IRCOT actuary. Further information on
<br />the IRCOT can be found in the County -wide financial statements and County notes.
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