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Trustees weigh changing 175/185 payout formula after presenter flags large disparities
Summary
A presenter told the Indian River Shores pension trustees that the town's weighted share plan concentrated roughly 75% of 175/185 distributions among five accounts; trustees agreed to ask the town and union to consider a possible equal-allocation change for FY2027 and tabled a formal recommendation.
A presenter to the Indian River Shores Pension Board urged trustees to consider changing how chapter 175/185 insurance-premium monies are distributed, saying current rules concentrate most of the payout in a few accounts.
"The top 5 participants in the plan as we have it received 76, almost 75% of the entire dispersal," the Presenter said, citing fiscal-year 2024 data and specific balances for the largest accounts of "475,679" and "399,177." He proposed considering an equal allocation starting in fiscal year 2027 so more members would benefit while still preserving longevity rewards.
Board members acknowledged recruitment and retention challenges in public safety and agreed the distribution method could influence hiring. Staff noted that the 175/185 funds derive from insurance premiums written within town limits and contrasted the town's weighted-share approach with common practices tied to the Florida Retirement System.
Trustees did not adopt a policy change at the meeting. The board agreed to table a motion and asked staff to present the matter to the town and the union for possible negotiation; a formal ordinance change and collective-bargaining steps would be required to alter benefits. "If we are saying that something should be looked at, then you should say it to both of the parties who have a decision," the Staff member said.
