Florida Retirement System

1
Florida Retirement System

• Division of Human Resources

2
Florida Retirement System

• Defined benefit plan
• Non-contributory system
• DROP Available 1998

3
Eligibility

• Regular retirement benefits
• 6-year vesting
• Age 62 or 30 years of service at any age
• Early retirement benefits
• Benefits reduced 5 percent per year under age 62

4
Benefit Formula

• Years of service X value per year
• X Average Final Compensation (AFC)
• Option 1 annual benefit at normal
• retirement age
• Divide by 12 monthly benefit

5
Years of Service

• Based on fiscal year (July 1 - June 30)
• Work year
• 9/10 month employee
• 12 month employee

6
Years of Service May Include

• Withdrawn or refunded service
• Leave of absence
• Two years total (24 months)
• Must return immediately after leave for one
  complete calendar month
• Must be vested before it is creditable

7
Years of Service May Include

• Military service
• Employed prior to January 1, 1987
• Active duty during wartime
• Four year maximum
• Must be vested before it is creditable
• Cannot claim if using in another pension

8
Years of Service May Include

• In-state public service
• In-state private school service
• Must be accredited and non-sectarian
• Out-of-state federal public service
• 5-year maximum
• Cannot be used in another pension plan
• Must be vested to be creditable

9
Years of Service May Include

• May use pre-tax dollars (403(b), 457, IRAs) to
  purchase additional service
• Must roll money direct to FRS Trust Fund to
  purchase additional service

10
Value Per Year

• FRS service
• Age 62 or 30 years 1.60
• Age 63 or 31 years 1.63
• Age 64 or 32 years 1.65
• Age 65 or 33 years 1.68
• TRS service 2.00

11
Average Final Compensation(AFC)

• Fiscal year (July 1 - June 30)
• Average of highest five years of salary

12
Preparing to Retire

• Review annual statement from Division of
  Retirement
• Verify total years of service
• Verify costs for service credit (i.e. refunded,
  military, LOA)
• Apply for retirement 3 to 6 months in advance of
  retirement date

13
At Retirement

• Designate a beneficiary
• Option 1 or 2 Anyone
• Option 3 or 4 Spouse/Joint Annuitant

14
Choose An Option

• Option 1 No survivors benefit after members
  death
• Option 2 Ten years guaranteed
• Option 3 Benefit continues to beneficiary
• Option 4 Reduced continuing benefit to survivor

15
Option Calculation

• 18.58 yrs _at_ 1.60 29.73
• 1 24,000
• 2 26,500
• 3 28,000 Total 140,500 28,100
• 4 30,000 5
• 5 32,000

16
Option Calculation

• Option 1
• AFC X value Annual Monthly
• 28,100 X 29.73 8,354.13 696.18
• 12

17
Option Calculation

• Member 62 Spouse 60
• Option 1 696.18
• Option 2 (.95627) 665.74
• Option 3 (.76806) 534.71
• Option 4 (.86072) 599.22 (399.44)

18
Early Retirement Calculation

• Member 60 Spouse 58
• Option 1 696.18 (.90000)557.44
• Option 2 (.96543) 538.17
• Option 3 (.78165) 435.72
• Option 4 (.86946) 484.67
  (323.08)

19
Leave Payments

• Vacation leave cash out up to maximum based on
  position
• TEAMS and 12-month faculty up to 352 hours
• USPS up to 240 hours
• Payment included in wages for calculation of
  highest five years (AFC)

20
Leave Payments

• Sick Leave
• ¼ of hours accrued after 10/73not to exceed
  payment for 480 hours

21
At Retirement

• Birth verification (member and joint annuitant)
• Spousal acknowledgment (Option 1 or 2)
• Application up to 6 months prior to date of
  termination

22
After Retirement

• Reemployment limitations
• Restrictions only apply to FRS-covered employers
• 1st month of retirement off any FRS employers
  payroll
• Any work cancels retirement
• All benefits lost

23
After Retirement

• 2nd - 12th month with a FRS-covered employer
• Benefit forfeited for any work in month
• Limited exceptions
• After 12 months - no restrictions!
• No restrictions on private employment!

24
After Retirement

• Retirement final - check cashed/deposited
• Option cannot be changed
• No service may be added

25
After Retirement

• Benefits paid monthly
• Electronic Fund Transfer
• Tax withholding
• Cost of Living Adjustment (COLA) - 3
• Paid July 1 of each year

26
After Retirement

• Eligible for Health Insurance Subsidy (HIS)
• Years of service X 5 monthly subsidy
• Minimum amount - 30
• Maximum amount - 150

27
After Retirement

• Continuation of health/state life insurance
• Health insurance costs as of 1/2005
• Individual 371.12
• Family 841.98
• Medicare (Single) 197.36
• Medicare (Family 1lt65) 568.48
• Medicare (Familygt65) 394.72

28
After Retirement

• Continuation of State Life Insurance
• Policy coverage is 10,000/retains ADD
  provisions
• Costs 4.20/month

29
Medicare Care Costs

• Effective January 1, 2005
• Part AHospitalization (no additional costs)
• Part B--Medical services (78.20/month)
• Enrollment through Social Security Administration

30
Retirement Services

• Retirement Online
• Visit www.frs.state.fl.us or www.myFRS.com
• Member services for active memberscurrent or
  former employees
• DROP services for members participating in DROP
• Retiree services for all retirees and monthly
  benefit recipients

31
For Assistance

• Contact
• Benefits/Retirement
• PO Box 115005
• Division of Human Resources
• Gainesville, FL 32611-5005
• Phone [phone] or Suncom 622-4941
• E-mail retirement_at_ufl.edu