1. Understanding Your Retirement Benefits Under the FRS Pension Plan
DIVISION OF RETIREMENT
For Members of the
Regular Class and Senior Management Service Class

2. 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
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3. My FRS Financial Guidance Line
The Two FRS Plans
Pension Plan
Investment Plan
My FRS Financial Guidance Line
(866)
EY Financial Planners
Free, unbiased financial planning and counseling services
Plan Choice Guidance
Choice Service
If you are a new employee, you have access to the powerful, online Choice Service powered by Financial Engines®.Log in now to take this advantage!. In 10 short minutes, you can see for yourself how life decisions could affect your retirement future. The Choice Service can create multiple "what if" scenarios just for you. How you use the service is completely up to you: Log in with your User ID and password (or Social Security number and PIN if first time logging in)
Change just a few assumptions to reflect your personal situation
Get a customized view of your retirement benefits based on the information you provide
Explore your options, save your assumptions, and return later-as often as you wish before your election deadline
File an election when you're done-directly online (or, if you prefer, you can always file a paper election or call the MyFRS Financial Guidance Line)
So, log in, compare plans and rest easy knowing that you're on the path to an informed decision. Advisor Service
After making your plan choice election, you can join the thousands of FRS members who have already taken advantage of the online ADVISOR SERVICE, also powered by Financial Engines®. Regardless of which FRS plan you're in, you can access this powerful online application to create a comprehensive plan for retirement. Log in now to take this advantage.! By providing information specific to your current status and goals, the Advisor Service can: Create a financial plan for retirement that takes into account your personal information (current age, income, retirement age and outside investments) and your retirement income goals
Update you on important investing concepts like market risk, inflation risk, asset allocation, diversification, and more-helping you become a knowledgeable long-term investor
Receive personalized and objective guidance on how to invest your Investment Plan account balance, or, if you are a Pension Plan member, how to invest your savings in one non-FRS tax-deferred account
Help you create personal "what-if" scenarios for you to see the effects of opening another retirement account
In about 10 minutes, the Advisor Service can suggest the rate at which you need to save in order to reach your retirement goals.
2nd Choice Service
Every employee gets a second career opportunity to switch FRS plans. Changes in your career path or other life circumstances, may mean you should explore your options for switching retirement plans. As with your first election, we're providing you with valuable tools, such as the online 2nd CHOICE SERVICE, to help guide you in making a decision that's right for you. This service provides you with similar modeling functions and capabilities, taking into account your current plan and accumulated benefits, and any other new circumstances and updated information you provide. Log in now to take this advantage! Using the 2nd Choice Service, you can: Change just a few assumptions to see whether life or career changes might make the other FRS retirement plan more attractive for you
Get a newly customized view of your retirement benefits based on the updated information you provide
Explore your options, save your assumptions, and return later-as often as you wish before making your 2nd and final election
File your final election on paper when you're done, using the 2nd Election Retirement Plan Enrollment Form (because it's such a critical choice-offered only once-you'll need to file your election using this paper form)
You have only one opportunity to switch plans during your career. Using the 2nd Choice Service can help ensure you're on track to make the right decision for your financial future. You must be actively employed to make an election. Account Management
Once you've chosen a retirement plan, you'll have access to a personalized home page from which you can manage your FRS benefits online. Depending on which plan you're in, you'll be able to perform some of the following valuable functions: If you're a Pension Plan member, you can review salary and service history, and explore DROP or different payout options
If you're an Investment Plan member, you can review your account, investment performance or make transfers between funds
As always, if you need assistance with managing your account, you can take the time to use the Advisor Service or call , Option 2 to speak with an Ernst & Young financial planner.
Chat live with EY Financial Planner
MyFRS.COM
Access financial planning tools and resources
DIVISION OF RETIREMENT

4. FRS Pension Plan Member Handbook
Guide to retirement benefits provided for your specific Membership Class.
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5. RETIREMENT GUIDES
DIVISION OF RETIREMENT

6. FRS.MYFLORIDA.COM

7. 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

8. 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

9. 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

10. 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

11. 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
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12. 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.
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13. 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

14. 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

15. 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

16. 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

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

18. 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.
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19. 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

20. 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
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21. Percentage Value Per Year
Based on the membership and/or age/service credit.
If initially enrolled before July 1, 2011:
If initially enrolled on or after July 1, 2011:
Regular Class Service
Senior Management Service Class
Age 62 or 30 years = 1.60%
2.00%
Age 63 or 31 years = 1.63%
Age 64 or 32 years = 1.65%
Age 65 or 33 years = 1.68%
Regular Class Service
Senior Management Service Class
Age 65 or 33 years = 1.60%
2.00%
Age 66 or 34 years = 1.63%
Age 67 or 35 years = 1.65%
Age 68 or 36 years = 1.68%
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22. 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

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

24. 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
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25. 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

26. 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

27. 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/ X 3% = 2.63%
X 3%
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28. 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
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29. 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

30. 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

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

32. 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

33. 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

34. 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

35. 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

36. FRS.MYFLORIDA.COM

37. FRS ONLINE LOG IN PAGE
DIVISION OF RETIREMENT

38. CONTACTING THE DIVISION
Telephone: Toll free
Locally
DIVISION OF RETIREMENT

39. QUESTIONS AND ANSWERS
DIVISION OF RETIREMENT