The blended contribution rate legislation was passed by the legislature and became effective on July 1, 2002. The, uniform employer contribution rate is paid on behalf of each employee, regardless of plan, based on percentage of pay and FRS membership class. The blended contribution rate only affects the amount your employer contributes to the Pension Plan and the Investment Plan. It does not change your benefit amount under the Pension Plan or the percentage of salary contributed to your Investment Plan account. Nor does it affect how much you may contribute.
Average final compensation (AFC) is the average of the 5 highest years of salary earned during covered employment (8 highest years of salary if first enrolled in the FRS on or after July 1, 2011). Salary records are kept for retirement purposes by fiscal year (July 1 - June 30). Certain kinds of payments, such as lump-sum sick leave payments, retirement incentive bonuses, and lump-sum annual leave payments in excess of 500 hours, cannot be included in the AFC.
Independent, experienced financial education firms provide employees with unbiased information and the services necessary to help them choose the plan that is best for them. In doing this, the SBA follows the regulations issued by the U.S. Department of Labor under section 404(c) of the Employee Retirement Income Security Act (ERISA) and Florida Statutes. This section of ERISA protects a fiduciary (in this case, the SBA Trustees) against liability for investment losses arising from investment choices in employee-directed retirement plans if:
During years when the Pension Plan is determined to be less than 100% actuarially funded, the Florida Legislature may take steps to improve the funding level by increasing employee or employer contributions or lower plan costs by reducing future Pension Plan benefits.
Pension Plan underfunding or future cost increases to fund the FRS may make it necessary for the Florida Legislature to lower the amount that employers contribute to Investment Plan members accounts or increase the amount that employees contribute to their Investment Plan accounts.
If you have earned retirement credit in the Special Risk Class and another FRS class, you may have two different normal retirement dates under the Pension Plan. If this is true for you, it is necessary to calculate the two portions of your benefit separately and add them together to determine your total Pension Plan benefit. If you retire before reaching your normal retirement date for a membership class, early retirement factors will apply in that case. When you reach your normal retirement date for both types of service (special risk and non-special risk), neither part of the total benefit is reduced for early retirement.
|Investment Plan||State Board of Administration||
|Division of Retirement||
Yes, click here for a detailed comparison of the death benefits under both plans.