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.”