1. Retirement FGCU Benefits Staff

2. Retirement This presentation is an overview of the Retirement Plan options available to USPS, A&P and Faculty employees. For more detailed information, please visit the Florida Retirement System (FRS) website at: www.myfrs.com www.myfrs.com

3. Retirement Retirement Plan Options  USPS, A&P & Faculty employees Florida Retirement System (FRS) Pension Plan FRS Investment Plan  Additional Option for A&P and Faculty employees Optional Retirement Program (ORP)

4. Retirement FRS Pension Plan The Pension Plan is a traditional defined benefit plan:  There is no cost to you  The university makes contribution to the FRS Trust Fund on your behalf to fund your future pension benefit  You are vested in the FRS Pension Plan when you have earned 6 years of creditable service  Your retirement benefit is a guaranteed benefit based on a formula that includes: age, FRS Membership Class (e.g. Regular, Special Risk, etc.), and 5 years of highest pay, averaged

5. Retirement FRS Pension Plan cont.  Payment is a guaranteed monthly check for life beginning at retirement (normal retirement age is age 62 or 30 years of service) and automatically increased each July by a 3% cost of living adjustment. Other options provide for continued payments to your surviving beneficiary/joint annuitant.  Upon reaching normal retirement age, you are eligible for DROP (Deferred Retirement Option Program) Allows you to ‘retire’ without terminating employment for a maximum of 5 years Your monthly pension benefit accumulates in the FRS Trust Fund, and earns interest compounded monthly to an effective annual rate of 6.5% There are several DROP account payout options available when your DROP participation ends

6. Retirement FRS Investment Plan  The Investment plan is a defined contribution plan  There is no cost to you  The University contributes a percentage of your salary (9% for Regular Class members) into an account set up in your name  You select where to allocate contributions from among an assortment of investment funds  You are vested in your account after one year of creditable service.  Your retirement benefit is based on your account balance, which equals: employer contributions plus investment returns minus expenses, fees, and losses

7. Retirement FRS Plan Choice Period  As a new employee, you must choose one of the two FRS plans.  You have until the end of the 5 th month following your hire date to enroll, otherwise your Plan Choice defaults to the FRS Pension Plan.  After your Choice period, you will have a second opportunity during your career with FRS to switch retirement plans

8. Retirement Compare Pension Plan vs. Investment Plan  Feel you need more information on these two plans? Click below and watch a short video that compares the Pension Plan vs. the Investment Plan. http://www.fgcu.edu/HR/files/FRS_output.wmv

9. Retirement Optional Retirement Program (ORP)  The ORP is the default retirement plan for A&P and Faculty employees  The ORP is a defined contribution plan  You have 90 days from your hire date to enroll in the ORP and sign an annuity contract with one of the 5 approved investment provider companies.  If you do not complete the required enrollments within 90 days of hire, your retirement plan defaults irrevocably, to the FRS Pension Plan. You will then have until the end of your 5 th full month of employment to choose between the FRS Pension Plan or the FRS Investment Plan

10. Retirement Optional Retirement Program There are 5 investment providers from which to choose TIAA-CREF Valic ING Jefferson National MetLife

11. Retirement Optional Retirement Program  The University contributes 10.42% of your salary to your ORP account  You are vested immediately in University contributions  You may make your own contributions, but they are not required in order to receive the University’s contributions  You can start and stop personal contributions at any time  2007 employee contribution limit Under age 50Over age 50 $15,500$20,500

12. Retirement Supplemental Tax Sheltered Annuities (403b)  The university also offers enrollment in tax-sheltered annuities  Available to all employees  You can start and stop your contributions at any time  Contact the approved companies to enroll

13. Retirement ORP and Supp. 403b approved companies  TIAA-CREF -- http://www.tiaa-cref.org/http://www.tiaa-cref.org/ Company Representative Sharon Mohan 561/ 338-0785  VALIC -- http://www.valic.com/valic2003/aigvalic.nsf/contents/homehttp://www.valic.com/valic2003/aigvalic.nsf/contents/home Company Representative Jim Reddington 239/472-9416 email: jim_reddingtom@aigvalic.com

14. Retirement ORP and Supp. 403b approved companies  ING/Jefferson National - - http://ingretirementplans.com/index.shtmlhttp://ingretirementplans.com/index.shtml http://www.jeffnat.com/ Company Representative Shanna Sullivan/Andrea Modica 800/338-6115 email: Gabor62ald@aol.comGabor62ald@aol.com  MetLife Investor -- http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator Company Represtentative Diana Frantz 239/997-9834 email: Dinijfrantz@aol.com

15. Retirement Deferred Compensation (457)  University employees are eligible to participate in the State of Florida Deferred Compensation Plan, a tax deferred "employee contribution" investment program.  For plan information and a current list of Deferred Compensation companies, contact the Office of Deferred Compensation at 877/ 299-8002 or visit their website at https://www.myfloridadeferredcomp.com/SOFweb/index.htm https://www.myfloridadeferredcomp.com/SOFweb/index.htm

16. Retirement Human Resources Howard Hall, Room 239 239/590-1400