PENSION FUND HISTORY
Pension History
September 2007 – TLFFRA pension plan voted in by the operations staff of the fire department. Initial contribution rates – 10% employee/10% employer. Initial multiplier – 1.67%. Initial Death & Disability (D&D) Benefits – $100 a month for both D&D. Post-tax contributions were made until we received a favorable private letter ruling from the IRS.
January 2010 – Contribution rates increased to 12% employee/12% employer
October 2010 – Received a favorable private letter ruling from the IRS, qualifying our plan, allowing contributions from the plan to be taken out of the employees paychecks pre-tax.
November 2010 – Contribution rates increased to 13% employee/12% employer, also the membership voted that if/when we were able to opt out of social security, the membership would increase employee contribution rates to 15.2%
June 2011 – Received a favorable determination letter from the IRS stating that our plan met the requirements to opt-out of social security. All monies paid into social security since plan inception were refunded to the employees and the district. Contribution rate increased to 15.2% employee/18.2% employer. The district had elected to put the 6.2% that they were contributing to social security towards the employers contribution rate in the pension fund.
August 2011 – Contribution rates increased to 18.2% employee/18.2% employer
September 2013 – Contribution rates raised to 19.2%/19.2%. Employees also vote to increase contribution rates to 20%, adding a 0.4% (19.6% Total) contribution rate increase starting 10/1/2014 and another 0.4% (20.0% Total) contribution rate increase starting 10/1/2015
November 2013 – Multiplier Increased from 1.67% to 2.61%. New D&D benefits reflect new multiplier. Survivor benefits increase from $100 a month to, spouse receiving 66% of a members full benefit, children’s benefit increased to add 7.47% per child, child w/o surviving spouse receives 14.94% of a members full benefit. 2 year DROP added.
October 2014 – Contribution rates increased to 19.6% employee/19.2% employer
May 2015 – Multiplier increased from 2.61% to, 3% for the first 20 years of service credit & 2.15% for every year of service credit after 20. D&D benefits reflect new multiplier. DROP benefit remains the same.
October 2015 – Contribution rates increased to 20.0% employee/19.2% employer
_____________________________________________________________________________