Davie, Fla., created a defined benefit plan for the town's non-union employees, said William Underwood, director of budget and finance. The town previously offered only a $12 million 401(a) plan for this group, and the employees covered by that plan had until Jan. 31 to decide whether to remain in it or move to the new plan, Mr. Underwood said. Town council members created the pension plan because they empathized with employees whose defined contribution plan balances had been hit by the markets, he said. New hires will be able to choose either plan.
Florida League of Cities, Tallahassee, will be the trustee of the new plan, the investments of which will be run by Atlanta Capital and State Street Global Advisors, along with the other plans overseen by the league. The asset allocation will be 45% equity and 55% fixed income.
The town also sponsors policemen's and firefighters' pension funds, which have combined assets of about $53 million, according to the Money Market Directory. All town employees also can participate in a $9 million 457 plan, which is entirely participant-funded, Mr. Underwood said.