(The Center Square) — Florida’s pension system improved its financial position in the past fiscal year according to its annual comprehensive financial report.
The Florida Retirement System for state, county and municipal employees enjoyed investment returns of 10.52%, which increased the plan’s net position to $199.7 billion, a 6.6% increase compared to the year before ($187.4 billion). The plan’s funding ratio improved from 82.4% to 83.7% this year.
The plan has liabilities of $6.06 billion, up from last year when those added up to $3.49 billion.
Last year, the plan’s investments had a return of 7.5%, which is still better than the plan’s expected 6.7% rate of return.
The funding ratio is defined as the share of future obligations covered by current assets and is a solid measure for determining the fiscal health of a pension fund.
According to the report, contributions from employers (taxpayers) totaled $6.5 billion, a 15.6% increase from the previous year ($5.58 billion), while employee contributions added up to $923 million, up from the $904 million collected last year.
The report said the increase was due to a “higher payroll base, primarily in local government employers and higher employer contribution rates.”
Benefits paid to retirees and beneficiaries were up 0.9% for a total of $12.36 billion.
The plan has 659,333 contributing members (state and local employees), with 489,438 of them vested. They support 459, 428 retirees and beneficiaries.
Members can choose at hiring between the standard defined-benefit pension plan and a plan akin to a 401-K called the investment plan. Employees have eight months to opt into a plan or they will be sent by default into the investment plan.
According to a report by Fitch Ratings, Tennessee had the lowest pension liabilities, followed by Nebraska, South Dakota, Florida and Arizona.