Retirement Plans

Plan Eligibility

Plan #109105 – Non‑Exempt (Hourly):

• Employees vest after five years of service if younger than 55.
• Employees 55 and older are immediately vested.

Plan #100236 – Exempt (Salary): 

•  Employees are immediately vested. 

Eligible full-time and part-time employees are enrolled on their date of hire.

Contributions

•  Sworn Officers contribute 9% of their gross income. Once an officer reaches 100% of their vested benefit before retirement eligibility, this contribution is reduced to 5%.
• A five‑year vesting period is required.
• For overtime hours exceeding 300 hours in a fiscal year, employee contributions (9% or 5%) stop on those overtime hours. Instead, the City contributes 10.5% of those overtime earnings into a 401(a) plan.

Retirement Options

Early Retirement: Age 50 with 10 years of eligible service.

Normal Retirement:

• Age 52 with 25 years of eligible service
• Age 55 with 10 years of eligible service

DROP Participation: Officers may participate in the Deferred Retirement Option Plan (DROP) for up to 60 months.

Additional Provisions:

• All applicable Florida Statute 185 rules apply.
• Sworn Officers may request a copy of the Summary Description, provided through Ordinance 20‑31, by contacting the Police Pension Office at PolicePensionOffice@cityofpsl.com or by calling 772-344-4219.

Learn more about Police Pension

Contributions

• This plan allows employees to contribute through payroll deductions beginning on their date of hire on a pre‑tax basis, after‑tax (Roth) basis or a combination of both.
• The plan is funded exclusively through employee contributions; the City does not match or contribute.
• Employees may increase, decrease, start or stop contributions at any time by submitting a contribution change form to the Retirement Office.
• Requests will be processed as administratively feasible.
• Annual contribution limits are set by the IRS.
• The plan offers the Age 50+ Catch-Up Contribution and the Special Catch-Up Contribution. Under Section 603 of the SECURE 2.0 Act, beginning in 2026, employees whose prior‑year social security wages from the City exceed $150,000 must make their catch-up contributions as Roth (after‑tax). Employees below that threshold may continue to choose pre‑tax or Roth catch-up contributions. 

Withdrawals

• Withdrawals are permitted only after separation from City employment.
• Limited in‑service withdrawal exceptions apply for employees who meet qualifying criteria:
  • In‑service Age‑Eligible Distributions at age 70½
  • Federally Declared Natural Disaster Distribution
  • $1,000 Emergency Expense Withdrawal
  • Unforeseeable Emergency Withdrawal
  • In‑service Distribution of Rollovers
• Withdrawals are subject to federal withholding tax in the year of distribution.
• 457(b) plans do not impose the 10% IRS early distribution penalty.

Loans

• Active employees may request a loan from their 457(b) account.
• Loan requests are submitted online through the participant’s MissionSquare account.
• Loans are available only from the pre‑tax balance; Roth balances are not eligible.
• Loan repayments are made through payroll deductions.
• Minimum loan amount: $1,000 (participants must have at least $2,000 in the account).
• Maximum loan amount: the lesser of $50,000 or 50% of the account balance.
• Only one loan may be taken per calendar year, and only one active loan at a time.

Contributions

• This plan allows employees to contribute through payroll deductions beginning on their date of hire.
• Contributions are made on an after‑tax (Roth) basis. 
• The plan is funded solely by employee contributions; the City does not match or contribute.
• Employees may contribute through payroll deductions or ACH. Payroll deduction change forms must be submitted to the Retirement Office for processing.
• Annual IRS contribution limits apply (limits vary by year; income‑based eligibility rules also apply).

Withdrawals

• Roth IRA contributions may be withdrawn at any time without tax or penalty.
• Withdrawal of earnings may be subject to federal withholding tax and a 10% early withdrawal penalty unless the distribution meets IRS qualified withdrawal rules.

The BENCOR Special Pay Plan is a tax‑advantaged retirement program made up of two coordinated components: a Section 401(a) plan and a Section 457(b) plan.

Together, these parts function as a single program that allows eligible employees to permanently save up to 7.65% in Social Security and Medicare taxes on qualifying “special pay,” defined as eligible accumulated sick and vacation leave.

Contributions made under both plan sections are tax‑deferred, meaning income taxes are postponed until funds are withdrawn. Payroll tax savings are permanent because Social Security and Medicare taxes are not imposed at distribution.

Plan benefits

• Permanently avoid up to 7.65% in Social Security and Medicare tax on funds contributed to the Bencor 401(a)
• Taxes are deferred until a withdrawal is taken
• 100% vesting on all plan contributions
• Ability to self‑direct investments across stable‑value and mutual fund options
• Option for full or partial withdrawals, or rollovers to an IRA or another employer‑sponsored plan after separation

Eligibility and participation

Employees must fall under a covered category of employment designated by Council policy. The policy covers non‑union classified, non-sworn and non-union classified sworn employees, who as of the effective date of this plan, do not have an existing Final Pay Deferral Plan in place.

Covered employees are required to participate upon retirement, separation from service, or entering DROP with at least $5,000 in accumulated sick and/or vacation pay.

Accessing your BENCOR account

The City establishes the BENCOR account after separation and final paycheck release, or upon entrance into DROP. Once created, participants may log in at www.bencorplans.com to access balances, investment choices, statements and withdrawal options.

The account is always 100% vested and belongs solely to the employee. Withdrawals may occur:

• After termination of employment
• During DROP participation (Section 401(a) funds only)
• Upon total disability or death (beneficiaries receive the balance)

Participants may take taxable cash withdrawals or complete a direct rollover to an IRA or other eligible plan for continued tax deferral. Requests are submitted electronically through the BENCOR website.

• Federal withholding taxes apply in the year of withdrawal.
• Rollovers defer taxes, except rollovers into a Roth IRA, which are taxable.
• A 10% IRS Early Distribution Penalty may apply to 401(a) withdrawals made before age 59½. Employees who separate employment in the year in which they turn 55 or later, qualify for the IRS’s Separation Exception and are exempt from the 10% Early Distribution Penalty. Learn More
• Pre‑tax funds are subject to IRS Required Minimum Distribution (RMD) rules.

Make‑Whole Provision

Participants who are subject to the 10% IRS Early Distribution Penalty may be eligible to receive a Make‑Whole payment from the City after meeting time-sensitive requirements. Participants must submit a signed Make‑Whole Provision Form and request a lump-sum distribution of their BENCOR funds via ACH or check. Participants who satisfy the requirements will receive a secondary payment from the City of approximately 2.35% of the 401(a) balance. Combined with the 7.65% payroll tax savings, this offsets the 10% early withdrawal penalty, ensuring the participant is not financially disadvantaged based on age‑related IRS rules.

How do I access my retirement accounts?

Current and former employees can manage their City retirement accounts through the MissionSquare online portal at www.missionsquare.com or by calling 800-669-7400.

Through their MissionSquare account, participants can:

• Access account information, investment tools and retirement planning resources
• Update personal information
• Manage and update beneficiary designations
• Review portfolio performance and track investment growth
• Adjust investments and allocations at any time 
• Access quarterly statements, tax documents, and other educational tools
• Use the Retirement Education Center for videos, calculators, planning guides, and savings strategies
• Access Certified Financial Planner services for individualized planning support and retirement readiness consultations

Why should employees participate in a 457(b) or Roth IRA plan?

Participating in a 457(b) deferred compensation plan and/or a Roth IRA helps employees build additional retirement savings beyond the City’s 401(a) defined contribution benefit. These supplemental plans can play a key role in meeting long‑term financial and retirement goals.

How do employees enroll in the 457(b) and/or Roth IRA?

Employees who wish to begin contributing should contact the Retirement Office at RetirementOffice@cityofpsl.com.

Only W‑2-receiving full‑time, part‑time and contract‑with‑benefits employees are eligible to participate.

How do employees start or change contributions?

Employees may start, stop or modify contributions at any time by submitting a new contribution change form (available on the City’s Employee website) or by contacting the Retirement Office.

On the form, the employee selects a percentage of pay or a fixed dollar amount to contribute each pay period. The employee can choose to contribute their funds as pre-tax, after-tax (Roth) or a combination of both. Changes generally take effect within 1-2 pay periods, as administratively feasible.

Are there contribution limits?

Yes. Annual contribution limits are set by the IRS and may change each year. Employees can view current limits on MissionSquare’s website.

Can employees roll in a former employer’s retirement plan?

Yes, as long as your previous employer-sponsored retirement plan is eligible. You will need to contact your former employer’s retirement plan provider to determine if your plan(s) can be rolled into the City’s plans. The City’s 401(a) and 457(b) plans allow for rollovers from governmental 457(b), 401(a), 401(k), 403(b) and Traditional IRAs.

Rollovers must follow the City's plan’s rules:

• 401(a) plans do not permit withdrawals, loans or hardships; rolled‑in funds are accessible only after separation of employment.
• A provision on the 457(b) plan allows for in‑service distribution of rollovers, making rolled‑in funds accessible at any time. Current City contributions will not be accessible until separation of employment.

To initiate a rollover:

• Select your roll-in option on MissionSquare's Roll-In Services page.
• Contact your previous retirement plan provider to initiate the rollover. They may require additional documents.

For more information, visit MissionSquare’s Roll‑In Services page.

What investment options are available?

The City’s 401(a) and 457(b) plans offer stable‑value funds, target‑date funds, bond funds, specialty funds and equity funds.

Default investments:

• 401(a & 457(b): Target‑date fund
• Roth IRA: Money market fund

On select plans, a MissionSquare Brokerage investment option is available. This is a self-directed brokerage account that offers access to additional investments and securities for an additional cost through a Charles Schwab Personal Choice Retirement Account (PCRA). To add a MissionSquare Brokerage investment, an employee must have a total of $35,000 across all of their MissionSquare plans combined.

A $50 set-up fee is charged when the MissionSquare Brokerage Account is established. The fee is deducted directly from the employee's core MissionSquare account. A $50 annual maintenance fee will be charged. Additionally, Charles Schwab may charge transaction fees and commission for value-added services on the Schwab PCRA.

Important: The MissionSquare Brokerage investment through Charles Scwabb's PCRA is not the same as MissionSquare's brokerage account through MissionSquare Wealth Management.

May employees change investment options?

Yes. Investment selections can be changed at any time through the employee’s MissionSquare account under My Portfolio.

Employees may remain in the default investment, choose their own mix or opt for a managed account.

Managed accounts are offered by Morningstar Investment Management LLC, with tiered fees beginning at 0.5% of account balance.

Can employees request a loan from the 457(b) plan?

Yes. Active employees may request a loan online through their MissionSquare account under Loan and Withdrawals.

Loans are available only against pre‑tax balances; Roth balances are not eligible. Repayments are made through payroll deductions. 

Separated employees cannot receive new loans.

For loan questions, employees may contact MissionSquare at 800-669‑7400.

What happens to an outstanding 457(b) loan after separation?

Loan repayments stop once employment ends because payroll deduction is no longer available.

Former employees may pay the loan in full within 30 days of separating by calling MissionSquare and requesting a lump sum payoff.

If a former employee chooses not to pay off their loan, the outstanding loan balance will be deemed distributed at the end of the required cure period. When a loan is deemed distributed, the unpaid principal balance and any accrued interest is reported to the IRS as a taxable distribution. Repayment of the deemed loan is not required, as it is considered a taxable event in the year the loan was deemed. MissionSquare will issue a 1099-R for tax filing.

Individuals should consult a qualified tax advisor or accountant regarding any potential tax consequences or any tax-related questions they may have regarding deemed loans.

What is a MissionSquare RHS plan?

The MissionSquare RHS plan is an employer‑sponsored, tax‑exempt medical reimbursement plan under IRS Code §213(d). The plan is closed and no longer accepts contributions.

When can employees use RHS funds?

RHS funds become available seven days after separation from the City for eligible medical expenses.

Can RHS balances be rolled into another plan?

No. RHS funds must remain in the City of Port St. Lucie’s RHS plan.

Can survivors use RHS funds?

Yes. If beneficiaries are designated, surviving spouses or qualified dependents may continue using funds for eligible medical expenses. If no beneficiaries or eligible survivors exist, remaining funds are forfeited.

How are RHS claims submitted?

Employees may file claims:

• Online: Through the Meritain Health claims portal via single sign‑on from their MissionSquare account
• By form: Completed form(s) and supporting documentation can be faxed to 888-665-8495 or mailed to:

MissionSquare Health Savings (RHS) Plan
c/o Meritain Health, Inc.
P.O. Box 30136
Lansing, MI 48909‑7611

Where can employees find RHS forms and information?

Forms, guides and videos are available on the Meritain Health – MissionSquare Retirement website.