If you change your plan choice and notify the plan administrator prior to monies being transferred your choice may be reversed
No. The FRS is not trying to get you to choose the Investment Plan over the Pension Plan. It has no preference. Its goal is to provide objective information on both plans and give you the support you need to make an informed choice. It DOES want you to focus on your future retirement needs so you will begin to plan for your future. For that reason, it will provide you with ongoing investment and retirement planning information, which everyone can benefit from, no matter which plan they choose. On the average, keep in mind that most retirement plans provide you with an income of less than half your current salary. Most experts agree that you need about 70-90% of your current salary to retire comfortably. To make up the gap, all of us should be thinking about saving and investing.
First, it's important to understand that under both plans, if you stay long enough to vest, you'll get a benefit at retirement and, if you wish, it could be a guaranteed monthly payment for your lifetime. But there are uncertainties under both plans about the amount of that benefit and whether that benefit will be enough for retirement. That's because both plans deliver a benefit based on a number of variable factors. For the Pension Plan, it's salary and length of service that are uncertain. You really don't know ahead of time what they will be and how they will affect the formula and your benefit. For the Investment Plan, it's investment earnings that are the most uncertain. You don't know ahead of time how your investments will perform. Experts do know, if it's any comfort, that the stock market has outperformed other investments over the long term, even following unexpected events or tragedies. So, keep an open mind and evaluate both plans, as well as your own financial situation, using the MyFRS Financial Guidance Program. Make a realistic and informed assessment of your future (e.g., length of FRS service) and your comfort with risk. That way you can find out which plan is more likely to provide you with the highest benefit
Yes. You will receive a great deal of support in deciding which retirement plan is best for you. You should receive a new hire orientation brochure from your employer on your first day of employment. This contains a brief overview of your retirement plan choices. Approximately 60 days later you will receive a New Employee FRS Enrollment Kit containing a personalized Benefit Comparison Statement and additional general plan information. The statement provides benefit projections under both retirement plans.
You will also have access to the online CHOICE SERVICE on MyFRS.com , where you can model your options and receive personalized estimates of your retirement benefit for both plans. Finally, experienced financial planners at EY are available at the MyFRS Financial Guidance Line at 1-866-446-9377, Option 2 to provide you with free, unbiased financial counseling. This personalized, one-on-one counseling can help you decide which retirement plan may be best for you.
In order to qualify to receive a distribution of your benefits from your Investment Plan account, you must be off all FRS payrolls for three calendar months. (If you meet the normal retirement requirements for the Pension Plan, you can take a one-time distribution of up to 10% of your account after one calendar month and the remainder after three months.)
You'll receive a personalized Benefit Comparison Statement and a number of other key resources. The statement will give you projections of your expected benefit under the Pension Plan and Investment Plan. Additionally, your employer should give you a brochure entitled Your Money Your Choice Welcome to the Florida Retirement System as part of your orientation and show you a 10-minute video on the highlights of both retirement plans.
You can make your initial retirement plan choice selection in one of three ways if you are employed in a Regular Class or Special Risk class position:
All other retirement classes must file the paper form for that class found online under the forms link, or from your Human Resources office.
Everyone's situation is different. We strongly recommend that you review your personalized Benefit Comparison Statement, to be sent to your home in your New Employee Enrollment Kit, and use the online CHOICE SERVICE available on MyFRS.com or through the toll-free MyFRS Financial Guidance Line at 1-866-446-9377, Option 2. Also, you can click here for a detailed comparison of the two plans.
You'll need to choose either the Pension Plan or the Investment Plan. Make sure you: