The City of Boca Raton Retirement Systems manages two single employer defined benefit plans:
- General Employees' Pension Plan
- Police and Firefighters' Retirement System
Defined Benefit Plan
A defined benefit plan (DB plan) is a pension plan in which the employer promises a specific monthly benefit at retirement. The benefit is a monthly payment at a guaranteed fixed amount for life. The benefit amount is based on the employee's earnings history and service years.
Benefits include normal, early, disability, death, vested, termination refund, and Deferred Retirement Option Plan (DROP).
A defined benefit plan assets are held in trust and the plan is primarily funded by investment returns. The investment risk is assumed by the employer. A defined benefit plan is further funded by employee contributions as a percent of payroll and the employer contributions as actually determined.
- Exist for the benefit of the City
- Pension Trust fund in the City's Comprehensive Annual Financial Report
- Separate Boards and staff
- Each plan has a separate eight member board
- Pension staff serves both boards, administrative costs are shared
The Board of Trustees has engaged outside investment professionals to manage the assets of the plans. The investment managers buy and sell securities on behalf of the plan. The investment consultant is utilized to ensure compliance with the investment policy including asset allocations. The consultant also assists with the manager selection and monitoring processes. The investment custodian is responsible for the safekeeping of the assets.