Understanding Your Retirement Benefits Under the FRS Pension Plan

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FRS Pension Plan provides retirement benefits for members of the Regular Class and Senior Management Service Class. The plan offers a Pension Plan and an Investment Plan option, with details on eligibility, vesting requirements, and member resources provided. Explore the history, benefits, and guidelines of the FRS Pension Plan through informative materials and guides available for members. Get insights into retirement planning, financial counseling services, and access to essential tools for managing your retirement benefits.

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Understanding Your Retirement Benefits Under the FRS Pension Plan DIVISION OF RETIREMENT For Members of the Regular Class and Senior Management Service Class Chad Poppell, Secretary

FRS HISTORY FRS Created in December 1970 Employee Non-Contributory (Jan. 1, 1975 June 30, 2011) 3% Employee Contributions effective July 1, 2011 FRS Investment Plan alternative offered beginning July 1, 2002 DIVISION OF RETIREMENT 2

THE TWO FRS PLANS Pension Plan Investment Plan My FRS Financial Guidance Line (866) 446-9377 Free, unbiased financial planning and counseling services EY Financial Planners Plan Choice Guidance Chat live with EY Financial Planner Access financial planning tools and resources MyFRS.COM DIVISION OF RETIREMENT

FRS PENSION PLAN MEMBER HANDBOOK DIVISION OF RETIREMENT

RETIREMENT GUIDES DIVISION OF RETIREMENT 5

FRS.MYFLORIDA.COM 6

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. DIVISION OF RETIREMENT

ELIGIBILITY FOR A FUTURE BENEFIT UNDER THE FRS PENSION PLAN Occurs when you become a vested member. Vested membermeans you have met the years of service required to be eligible to receive a future benefit under the plan. DIVISION OF RETIREMENT

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 9

NORMAL RETIREMENT DATE If initially enrolled before July 1, 2011, normal retirement date for a vested member is: Age 62; or when you have completed 30 years of service whichever occurs first; or The age after 62 when you become vested Member Handbook Page 43 DIVISION OF RETIREMENT

NORMAL RETIREMENT DATE If initially enrolled on or after July 1, 2011, normal retirement date for a vested member is: Age 65 or when you have completed 33 years of service whichever occurs first; or The age after 65 when you become vested Member Handbook Page 43 DIVISION OF RETIREMENT

NORMAL RETIREMENT DATE If reaching your normal retirement date by: Age - Normal Retirement date would be the first of the month you turn that age. By years of service - Normal Retirement date would be the first of the month following the month you attain the years of service. DIVISION OF RETIREMENT

NORMAL RETIREMENT DATE - DROP K-12 Instructional Personnel 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 Read DROP guide DIVISION OF RETIREMENT

WHO CAN DEFER THEIR 60-MONTH DROP PARTICIPATION PERIOD? For Members enrolled prior to July 1, 2011: Normal Retirement prior to age 57 For Members enrolled on or after July 1, 2011: Normal Retirement prior to age 60 12 month election window 14

WHAT IS DROP? Retiring under the FRS Pension Plan upon DROP entry Delaying termination of employment up to 60 months. Not subject to 3 percent employee contributions. Monthly retirement benefits accrue in your DROP account DROP interest Cost-of-Living Adjustment (COLA). DIVISION OF RETIREMENT

UPON TERMINATION OF DROP DROP accumulation paid in one of three ways: Lump-sum payment; or Direct rollover to an eligible retirement plan; or Combined partial lump-sum payment and direct rollover. DROP termination packet DIVISION OF RETIREMENT 16

THE BENEFIT CALCULATION FORMULA Years of Service % Value per Year Average Final Compensation X X = Option 1 Annual Benefit at Normal Retirement Divide by 12 = Monthly Option 1 Benefit DIVISION OF RETIREMENT

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

OPTIONAL SERVICE CREDIT Member Handbook - Page 33 Refunded Service Leave of Absence Form FR-28 Wartime Military Service DD-214 In-State/Out-of-State Service Form FR-30 or DD-214 19

SERVICE CREDIT Fiscal Year and Work Periods Fiscal Year July 1 through June 30 9, 10, 11, or 12 contract 6 months /12 month contract = .50 service credit 6 months /10 month contract = .60 service credit Your receive credit for each month that you have worked. Maximum service credit per fiscal year = 1.00 DIVISION OF RETIREMENT

PERCENTAGE VALUE PER YEAR Based on the membership and/or age/service credit. If initially enrolled before July 1, 2011: Regular Class 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% Senior Management Service Class 2.00% If initially enrolled on or after July 1, 2011: Regular Class Service Age 65 or 33 years = 1.60% Age 66 or 34 years = 1.63% Age 67 or 35 years = 1.65% Age 68 or 36 years = 1.68% Senior Management Service Class 2.00% DIVISION OF RETIREMENT

AVERAGE FINAL COMPENSATION (AFC) If initially enrolled prior to July 1, 2011: Average of your highest five fiscal years of salary If initially enrolled on or after July 1, 2011: Average of your highest eight fiscal years of salary Up to 500 hours of lump sum annual leave can be used in the calculation of your AFC. DIVISION OF RETIREMENT

BENEFIT FORMULA CALCULATION Regular Class Service Member at Normal Retirement enrolled prior to July 1, 2011: Years of Service 30 = Gross Annual Option 1 Benefit of $12,000.00 Divide by 12 = Gross Monthly Option 1 Benefit of $1,000.00 % Average Final Compensation $25,000.00 X X Value/Year 1.60% X X 23

EARLY RETIREMENT Service Retirement before Normal Retirement Date Benefit Reduced 5% for each year under Normal Retirement age If initially enrolled prior to July 1, 2011, Normal Retirement age is 62. If initially enrolled on or after July 1, 2011, Normal Retirement age is 65 DIVISION OF RETIREMENT

BENEFIT PAYMENT OPTIONS Option 1: Lifetime monthly benefit to you. Option 2: Provides 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. Beneficiary can be anyone. DIVISION OF RETIREMENT

BENEFIT PAYMENT OPTIONS Option 3: Provides 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: Life time monthly benefit to you. 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. Beneficiary must be a qualified joint annuitant. DIVISION OF RETIREMENT

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 Years of service at retirement 26/30 X 3% = 2.60% 28.50/32.50 X 3% = 2.63% X 3% DIVISION OF RETIREMENT

PREPARING TO RETIRE Request an audit of your account at any time to: Determine cost of additional service Verify total years of retirement credit Request benefit estimate within 3-4 years of retirement date or participation in DROP DIVISION OF RETIREMENT

APPLICATION FOR RETIREMENT Apply up to six months prior Service Retirement Form FR-11 DROP DROP Retirement Application Form DP-11 Notice of Election to Participate in DROP and Resignation of Employment Form DP-ELE DIVISION OF RETIREMENT

OTHER ITEMS REQUIRED TO COMPLETE APPLICATION Form FRS-11o - Option Selection Form Form SA-1 - Spousal Acknowledgement Form Birth Date Verification member and for Joint annuitant if you selected Option 3 or 4 (See BVR-1 Form) Copy of registered Marriage Certificate - if you selected benefit payment option 3 or 4 and listed your spouse as your joint annuitant 30

FORMS ON WEBSITE: FRS.MYFLORIDA.COM DIVISION OF RETIREMENT

THE RETIREE PACKET Received just prior to receipt of your first benefit check Form W-4P Tax Withholding Certificate for Pension Payment Form DFS-A1-26R, Direct Deposit Authorization Form HIS-1, Health Insurance Certification for Pension Plan Members DIVISION OF RETIREMENT

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

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

FORFEITURE OF BENEFITS 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. Member Handbook Page 57 DIVISION OF RETIREMENT