FLORIDA RETIREMENT SYSTEM CREATED DECEMBER 1970 DEFINED BENEFIT PLAN 401(A) IRC NON-C0NTRIBUTORY...
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Transcript of FLORIDA RETIREMENT SYSTEM CREATED DECEMBER 1970 DEFINED BENEFIT PLAN 401(A) IRC NON-C0NTRIBUTORY...
FLORIDA RETIREMENT SYSTEM
CREATED DECEMBER 1970
DEFINED BENEFIT PLAN 401(A) IRC
NON-C0NTRIBUTORY SYSTEM
DROP ESTABLISHED 1998
FFllooriridada Retirement Retirement SystemSystem900 + Public 900 + Public
EmployersEmployers665,000 + Active Members665,000 + Active Members
288,000 + Retirees288,000 + Retirees
Over 390 Million Dollars inOver 390 Million Dollars in Monthly BenefitsMonthly Benefits
More than $26 Million in Health More than $26 Million in Health Insurance Subsidy (HIS)Insurance Subsidy (HIS)
SERVICE RETIREMENTSERVICE RETIREMENT
DISABILITY RETIREMENTDISABILITY RETIREMENT
SURVIVOR BENEFITSURVIVOR BENEFIT
System Benefit System Benefit TypesTypes
SeService rvice RetirementRetirement
Normal Normal RetirementRetirement Early Early RetirementRetirement Deferred Deferred RetirementRetirement
Deferred Retirement Deferred Retirement Option ProgramOption Program
(DROP)(DROP)
Effective July 1, 1998Effective July 1, 1998
Vested and Eligible for NormalVested and Eligible for Normal Retirement BenefitsRetirement Benefits
Must establish Future Termination DateMust establish Future Termination Date
Twelve (12) Months to DecideTwelve (12) Months to Decide
Maximum of 60 MonthsMaximum of 60 Months
Regular Class MembershipRegular Class Membership
Example: Age 51 30 Yrs of ServiceExample: Age 51 30 Yrs of Service
11stst Window- Window- December 1, 2009 December 1, 2009 (Full Five Yrs)(Full Five Yrs)
22ndnd Window- Window- Anywhere Anywhere betweenbetween December 1, 2009 and 57 December 1, 2009 and 57 forfor the Full Five Yearsthe Full Five Years
Special Risk Special Risk MembershipMembershipExample: Example: Age 48 with 25 yrs of Special Age 48 with 25 yrs of Special
RiskRisk
11stst Window- Window- October 1, 2009 October 1, 2009(Full Five Yrs)(Full Five Yrs)
22ndnd Window- Window- Anywhere between Anywhere between October 1, 2009 and age October 1, 2009 and age 52 52 for the full five years.for the full five years.
Def
Def e
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Reti
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Pro
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DROPDROP
Retirement benefit is “Banked” while Retirement benefit is “Banked” while you continue to workyou continue to work
Earn interest compounded monthly atEarn interest compounded monthly at an annual rate of 6.5%an annual rate of 6.5%
DROP benefit increased July 1 for DROP benefit increased July 1 for 3% Cost-of-Living Increase 3% Cost-of-Living Increase (COLI)(COLI)
Deferred Retirement Deferred Retirement Option ProgramOption Program
DR
OP
DR
OP
Upon termination of employmentUpon termination of employment lump-sum payment of lump-sum payment of DROP benefitsDROP benefits
Rollover provision to reduce Rollover provision to reduce taxestaxes
Receive lifetime monthly benefitReceive lifetime monthly benefit
Reemployment after Retirement
After retirement or DROP termination, retired FRS members may be employed by any private employer or any public employer not participating in the FRS without affecting his/her FRS benefits.
However restrictions apply to employment with an FRS employer.
Reemployment after Retirement
Currently, any retired FRS member who is reemployed by an FRS employer during the first calendar month after retirement or DROP is not considered to have terminated employment.
July 1, 2010, this changes to first 6 months.
Currently, any retired member who returns to employment with an FRS employer during the 2nd through 12th months must suspend their benefits until they have been retired for 12 months.
July 1, 2010, this changes to the 7th through 12th months.
Renewed Membership
An employee that establishes a renewed membership (2nd retirement) before July 1, 2010, is covered by an FRS retirement plan until they retire again.
Renewed members who have had a break in service and return to FRS-covered employment after July 1, 2010, are still covered by renewed membership.
Retirees who initially return to FRS-covered employment on or after July 1, 2010, will not earn another retirement benefit.
Ira L GainesIra L GainesState Retirement BenefitsState Retirement Benefits
AdministratorAdministrator850-488-6491850-488-64911-888-738-22521-888-738-2252
[email protected]@dms.myflorida.com