UNDERSTANDING YOUR RETIREMENT BENEFITS UNDER THE …
9/21/2017
UNDERSTANDING YOUR RETIREMENT BENEFITS UNDER THE FRS PENSION PLAN
For FRS Members Enrolled Prior to July 1, 2011
Erin Rock, Secretary
PENSION PLAN MEMBER HANDBOOK
DIVISION OF RETIREMENT
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RETIREMENT GUIDES
9/21/2017
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FRS.
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DISCLAIMER
If questions of interpretation arise as a result of the attempt to make retirement provisions easy to understand, Chapter 121, Florida Statutes; Chapter 60S, Florida Administrative Code; and the Internal Revenue Code shall remain the final authorities.
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FRS HISTORY
? FRS created in December 1970 (TRS/SCOERS Merger) ? Only one plan ? FRS Pension Plan ? Employee contributions required
? Employee Non-Contributory System ? (Jan. 1, 1975 ? June 30, 2011)
? Three percent Employee Contributions effective July 1, 2011 ? FRS Investment Plan offered beginning July 1, 2002
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9/21/2017
THE TWO FRS PLANS
Pension Plan
Investment Plan
My FRS Financial Guidance Line (866) 446-9377
Plan Choice Guidance
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Chat live with EY Financial Planner
DIVISION OF RETIREMENT
Access financial planning tools and resources
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ELIGIBILITY FOR A FUTURE BENEFIT UNDER THE FRS PENSION PLAN
? Occurs when you become a vested member.
? Vested member means you have met the years of service required to be eligible to receive a future benefit under the plan.
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VESTING - FRS PENSION PLAN
? Members enrolled prior to July 1, 2001: ? Seven, eight or 10 year vesting
? Members enrolled on July 1, 2001 though June 30, 2011: ? Six year vesting
? Members enrolled on or after July 1, 2011: ? Eight year vesting
? Member Handbook ? Page 26
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NORMAL RETIREMENT DATE
? Is when you are first eligible to receive an unreduced retirement benefit; and
? Is also when you are eligible to participate in the Deferred Retirement Option Program (DROP).
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NORMAL RETIREMENT DATE
? All Service Classes; except Special Risk ? ? Age 62 or 30 years of service whichever occurs first.
? Special Risk Class Service ? ? Age 55 or 25 years of Special Risk Class Service whichever occurs first; or ? Combined total of 25 years of Special Risk Class service and military service purchased under the Wartime Military Service provisions and age 52.
? Member Handbook ? Page 43
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NORMAL RETIREMENT DATE
? If reaching your Normal Retirement date by age, your Normal Retirement date would be the first of the month you turn that age.
? If reaching your Normal Retirement date by years of service, your Normal Retirement date would be the first of the month following the month you attain the years of service.
? Service Retirement and DROP begin dates are always the first of the month.
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9/21/2017
NORMAL RETIREMENT DATE - DROP
? K-12 Instructional Personnel, may enter DROP at Normal Retirement or at anytime after reaching Normal Retirement and participate for a full 60 months.
? All others, unless you are eligible to defer your 60- month DROP participation period, your 60-month DROP participation period starts at your Normal Retirement date. ? 12 month election window
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WHO CAN DEFER THEIR 60-MONTH DROP PARTICIPATION PERIOD?
? Special Risk Class ? Normal Retirement by years of service prior to age 52
? All other Classes ? Normal Retirement by years of service prior to age 57
? 12 month election window
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WHO CAN DEFER THEIR 60-MONTH DROP PARTICIPATION PERIOD?
? Elected Officials ? ? May defer DROP entry until the next term of office but can only participate in DROP for 60 months or the length of that term of office whichever is less.
? DROP Guide -Page 16
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10/8/2017
WHAT IS DROP?
? Retiring under the FRS Pension Plan upon entering DROP but delaying termination of employment for up to 60 months.
? During DROP participation period, you monthly retirement benefits accrue in your DROP account on a tax deferred basis.
? Salaries earned while in DROP are not subject to the three percent employee contributions.
? DROP accrual earns interest ? Effective annual yield 1.3 percent.
? Cost-of-Living Adjustment (COLA).
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