Understanding Your Retirement Benefits Under the

Transcript:Understanding Your Retirement Benefits Under the:
Understanding Your Retirement Benefits Under the FRS Pension Plan For FRS Members Enrolled Prior to July 1, 2011 PENSION PLAN MEMBER HANDBOOK 2 DIVISION OF RETIREMENT RETIREMENT GUIDES 3 DIVISION OF RETIREMENT FRS.MYFLORIDA.COM 4 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 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 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 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 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 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 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 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