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Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2017 NOTE 12 - RETIREMENT PLAN - Continued FRS Investment Plan - Continued Benefits Provided - Continued: For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the five year period, the employee will regain control over his/her account. If the employee does not return within the 5 -year period, the employee will forfeit the accumulated account balance. For fiscal year ended September 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Board. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions: Cost of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll and by forfeited benefits of Investment Plan members. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances to various approved investment choices. Allocations to the investment member's accounts during the 2016-2017 fiscal year were as follows: Regular class 6.30%, Special Risk class 14.00%, Senior Management Service class 7.67%, and Elected Officers' class 11.34%. This includes the employee contribution of 3%. The Board's Investment Plan contributions and pension expense totaled $672,928 for fiscal year ended September 30, 2017. Employee contributions totaled $161,158 for the same period. 302