Understanding Your Retirement Benefits Under the

slide1. Understanding Your Retirement Benefits Under the FRS Pension Plan For FRS Members
Enrolled Prior to July 1, 2011<br>
slide2. PENSION PLAN MEMBER HANDBOOK 2 DIVISION OF RETIREMENT<br>
slide3. RETIREMENT GUIDES 3 DIVISION OF RETIREMENT<br>
slide4. FRS.MYFLORIDA.COM 4<br>
slide5. 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. 5 DIVISION OF RETIREMENT<br>
slide6. FRS HISTORY FRS Created in December 1970 (TRS/SCOERS Merger)
Only one plan – FRS Pension Plan
Employee Non-Contributory System
(Jan. 1, 1975 – June 30, 2011)
3% Employee Contributions effective) July 1, 2011
FRS Investment Plan offered beginning July 1, 2002 6 DIVISION OF RETIREMENT<br>
slide7. TWO FRS PLANS 7 This comparison has been designed to be intentionally brief and is not intended to include every plan detail. Complete details can be found in Chapter 121, Florida Statutes, and the rules of the State Board of Administration of Florida (SBA) in Title 19, Florida Administrative Code (F.A.C.) and the rules of the Division of Retirement of the Department of Management Services; Chapter 60-S , F.A.C. DIVISION OF RETIREMENT<br>
slide8. TWO FRS PLANS 8 State Board of Administration Division of Retirement Pension Plan Investment Plan Aon Hewitt Ernst & Young (EY) Dept. of Management Services Plan Choice Guidance or for financial planning and counseling call the
My FRS Guidance Line at
(866) 446-9377 DIVISION OF RETIREMENT MyFRS.COM<br>
slide9. 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. DIVISION OF RETIREMENT<br>
slide10. VESTING 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 10<br>
slide11. Normal Retirement Date Is when you are first eligible to receive an unreduced retirement benefit; and

Is also when your are eligible to participate in the Deferred Retirement Option Program (DROP). DIVISION OF RETIREMENT<br>
slide12. Normal Retirement Date Special Risk Class Service –
Vested and 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 Active Duty Wartime Military Service provision and age 52.
All other Service Classes –
Vested and age 62 or 30 years of service whichever occurs first. 12<br>
slide13. 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.
Years of service, your Normal Retirement date would be the first of the month following the month you attain the years of service. DIVISION OF RETIREMENT<br>
slide14. 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 DIVISION OF RETIREMENT<br>
slide15. Who can defer their 60-month DROP Participation period? All membership classes except for Special Risk Class:
If you reach your Normal Retirement date by years of service prior to reaching age 57, you may defer your entry into DROP up until the month in which your reach age 57 and still be eligible to participate in DROP for 60 months.
12 month election window.
Elected Officials may defer DROP entry until the next term of office but can only participate for 60 months or the length of that term of office whichever is less. DIVISION OF RETIREMENT<br>
slide16. Who can defer their 60-month DROP Participation period? Special Risk Class Members:

If you reach your Normal Retirement date by years of service prior to reaching age 52, you may defer your entry into DROP up until the month in which your reach age 52 and still be eligible to participate in DROP for 60 months.

12 month election window. DIVISION OF RETIREMENT<br>
slide17. WHAT IS DROP? You effectively retire under the Florida Retirement System (FRS) Pension Plan delaying termination for up to 60 months.
Your monthly retirement benefits accrue in your DROP account while participating in DROP.
Your DROP account earns an effective annual interest rate of 1.3 percent.
Your Retirement benefit while in DROP receives an annual Cost-of-Living Adjustment (COLA).
As a DROP participant you are not subject to 3 percent employee contributions. DIVISION OF RETIREMENT<br>
slide18. UPON TERMINATION OF DROP DROP accumulation is paid in one of three ways:
as a lump-sum payment, with 20 percent withheld for federal income taxes;
as a direct rollover to an eligible retirement plan; or
as a combined partial lump-sum payment and direct rollover.
A DROP termination packet mailed three months prior to your DROP ending date (Forms DP-Term & DP-PAYT). 18 DIVISION OF RETIREMENT<br>
slide19. THE BENEFIT CALCULATION FORMULA = Option 1 Gross Annual Benefit at Normal Retirement

Divide by 12 = Gross Monthly Option 1 Benefit DIVISION OF RETIREMENT<br>
slide20. YEARS OF SERVICE Is the total of all years and parts of years you worked in a covered position with an FRS employer plus any optional service credit that you purchase. DIVISION OF RETIREMENT<br>
slide21. OPTIONAL SERVICE CREDIT DIVISION OF RETIREMENT<br>
slide22. OPTIONAL SERVICE CREDIT DIVISION OF RETIREMENT<br>
slide23. ACCRUAL VALUE PER YEAR OF SERVICE . DIVISION OF RETIREMENT<br>
slide24. AVERAGE FINAL COMPENSATION (AFC) Average of your highest five fiscal years of salary.*
Statute allows up to 500 hours of annual leave to be used in the calculation of the AFC.
State agency employment limits as follows:
Career Service employees - Up to 240 hours of lump sum annual leave can be used in the calculation of your AFC.
Senior Management and Select Exempt employees - Up to hours 480 of lump sum annual leave can be used in the calculation of your AFC.
Consult your Human Resource office. * Fiscal Year is July 1 through June 30. DIVISION OF RETIREMENT<br>
slide25. BENEFIT FORMULA CALCULATION 25 Member with all Regular Class Service at Normal Retirement:<br>
slide26. BENEFIT FORMULA CALCULATION Member with all Special Risk Class Service at Normal Retirement: DIVISION OF RETIREMENT<br>
slide27. BENEFIT FORMULA CALCULATION 27 Member with Regular and Special Risk Class Service
at Normal Retirement both classes of service: DIVISION OF RETIREMENT<br>
slide28. EARLY RETIREMENT Service Retirement before Normal Retirement Date
Benefit Reduced 5% for each year under Normal Retirement age or proportional share thereof.
Special Risk Class – Reduced from age 55.
All other Classes – Reduced from age 62. DIVISION OF RETIREMENT<br>
slide29. BENEFIT PAYMENT OPTIONS Option 1: Lifetime monthly benefit to you.
Option 2: A reduced monthly benefit payment to you for your lifetime. If you die 10 years or more after retirement, no benefits are payable to your beneficiary. However, if you die within 10 years (120 months) of your effective retirement date, your beneficiary will receive a monthly benefit payment in the same amount you were receiving for the balance of the 120-month period (including any period of DROP participation). No further benefits are then payable.
Option 3: A reduced monthly benefit payment to you for your lifetime and a continuing benefit to your beneficiary. No further benefits are payable after both you and your beneficiary die.
Option 4: An adjusted monthly benefit to you while you and your beneficiary are living. Upon the death of either you or your beneficiary, the monthly benefit is reduced to 2/3 of the benefit payable while both were living. DIVISION OF RETIREMENT<br>
slide30. BENEFICIARY DESIGNATION Option 1 or 2 Beneficiary can be anyone.

Option 3 or 4 Beneficiary must be a qualified Joint Annuitant. DIVISION OF RETIREMENT<br>
slide31. Joint Annuitant Your spouse.
Your parent, grandparent, or a person for whom you are the legal guardian, claimed as a dependent on your federal income tax.
Your natural or legally adopted child who is either under age 25 or is physically or mentally disabled and incapable of self-support (regardless of age). DIVISION OF RETIREMENT<br>
slide32. 32<br>
slide33. 33 Fiscal Year: 2019
Benefit Fiscal Year: 2020
Benefit<br>
slide34. COST OF LIVING ADJUSTMENT (COLA) Retirees (including DROP participants) receive a COLA in their July benefit each year.

All service earned through June 2011 receives a 3% COLA
Service earned July 2011 and after – 0% COLA

Formula: Years of service through June 2011 divided by Years of service at retirement X 3%.
26/30 X 3% = 2.60%
28.50/30 X 3% = 2.85% DIVISION OF RETIREMENT<br>
slide35. APPLYING FOR SERVICE RETIREMENT Applications are accepted up to 6 months prior to your effective retirement date.

To retain your first eligible effective retirement date, you application must be received by the division within 30 days of your termination date.
If your application is not received by the division within 30 days of your termination date, your effective retirement date will be the first of the month following the month we receive your application. DIVISION OF RETIREMENT<br>
slide36. APPLYING FOR DROP RETIREMENT Applications are accepted up to 6 months prior to retirement date.

Form DP-11 and/or DP-ELE, must be received by the division no later than the last state working day of the month you elect to participate in DROP. DIVISION OF RETIREMENT<br>
slide37. OTHER ITEMS REQUIRED TO COMPLETE APPLICATION FRS-11o - Option Selection Form
SA-1 - Spousal Acknowledgement Form
Birth Date Verification – member and Joint annuitant (See BVR-1 Form)
Copy of Marriage Certificate - if you selected benefit payment option 3 or 4 and listed your spouse as your joint annuitant 37<br>
slide38. FORMS ON WEBSITE: FRS.MYFLORIDA.COM DIVISION OF RETIREMENT<br>
slide39. THE RETIREE PACKET A retiree packet is mailed just prior to receipt of your first benefit payment and includes the following:
Form W-4P, Withholding Certificate for Pension Payments (or complete online)
Form DFS-A1-26R, Direct Deposit Authorization (or complete online)
Form HIS-1, Health Insurance Certification for Pension Plan Members DIVISION OF RETIREMENT<br>
slide40. REEMPLOYMENT AFTER RETIREMENT During the first six calendar months of retirement or following your DROP termination date, you may not work for any FRS employer.
If you do, you will void your retirement and you will have to pay back any benefits received including your DROP payout
During the 7th – 12th calendar months of retirement or following your DROP termination date, if your return to work for an FRS employer you must suspend your retirement benefit for the months you worked. DIVISION OF RETIREMENT<br>
slide41. REEMPLOYMENT AFTER RETIREMENT Renewed Membership – Closed effective 07/01/2010.

Any retiree initially reemployed with an FRS participating employer on or after July 1, 2010, will not be eligible to participate in any state- administered retirement system. DIVISION OF RETIREMENT<br>
slide42. IMPORTANT NOTICE Forfeiture of Benefits as defined by Florida Statutes 121.091(5) or 112.3173

If you commit a specified offense prior to retirement or while participating in DROP and you were either:

Convicted by a court of competent jurisdiction; or

Terminated from employment as a result of admitting to the commission of a specified offense

You will forfeit ALL of your retirement rights and benefits! DIVISION OF RETIREMENT<br>
slide43. FRS.MYFLORIDA.COM DIVISION OF RETIREMENT<br>
slide44. FRS ONLINE LOG IN PAGE DIVISION OF RETIREMENT<br>
slide45. FRS ONLINE ACTIVE MEMBER My Account modules

Member Services modules

Other Links DIVISION OF RETIREMENT<br>
slide46. FRS ONLINE – DROP PARTICIPANTS 46 DROP Services Modules

DROP Information – Provides your DROP Account details and your DROP accrual monthly for your DROP participation period.

Beneficiary – View your beneficiary designation; change your beneficiary designation if you selected Option 1 or 2.
To change your beneficiary under Option 3 or 4, contact the Division.<br>
slide47. FRS ONLINE - RETIREE SERVICES 47 Account Information
View your current or prior monthly benefit payment stubs/statements and 1099R Tax Form.
View/change your Federal Tax withholding.
Print a Pension Income Verification Letter.
Beneficiary
View your beneficiary.
Change your beneficiary if you selection Option 1 or 2
Contact information to the division to change your beneficiary under Option 3 or 4 (limited to two changes).
Address Change – To update your address.
Direct Deposit – Update your direct deposit information<br>
slide48. CONTACTING THE DIVISION Telephone: Toll free 844-377-1888
Locally 850-907-6500

Email: retirement@dms.myflorida.com DIVISION OF RETIREMENT<br>
slide49. QUESTIONS AND ANSWERS 49 DIVISION OF RETIREMENT<br>