2011 Retirement Changes

Senate Bill 2100 Changes to FRS: Florida Retirement SystemChanges to FRS: Florida Retirement System Changes to ORP: Optional Retirement ProgramChanges to ORP: Optional Retirement Program Changes to DROP: Deferred Retirement Option ProgramChanges to DROP: Deferred Retirement Option Program Changes to COLA: Cost of Living AdjustmentChanges to COLA: Cost of Living Adjustment

Retirement Changes Effective 07/01/11:Effective 07/01/11: 3% mandatory employee pre-tax contribution3% mandatory employee pre-tax contribution All budgeted employeesAll budgeted employees DROP participants exempt from contributionDROP participants exempt from contribution New mandatory contribution is not included in the IRS limit (currently $16,500/$22,000 per year)New mandatory contribution is not included in the IRS limit (currently $16,500/$22,000 per year)

FRS Changes Pension and Investment PlansPension and Investment Plans Employee contribution 3% (pre-tax)Employee contribution 3% (pre-tax) No employee action neededNo employee action needed

ORP Changes Mandatory employee contribution 3% (pre-tax)Mandatory employee contribution 3% (pre-tax) Employer contribution 7.42%Employer contribution 7.42% Action may be required:Action may be required: Contribute more than 7.42%Contribute more than 7.42% HR will notify affected employeesHR will notify affected employees Other investment options are availableOther investment options are available

DROP Changes Program remains - with changesProgram remains - with changes DROP participants will not be required to contribute 3%.DROP participants will not be required to contribute 3%. Members with effective DROP begin date on or before June 30, 2011:Members with effective DROP begin date on or before June 30, 2011: Retain 6.5% interest rateRetain 6.5% interest rate DROP participation on or after July 1, 2011:DROP participation on or after July 1, 2011: 1.3% interest rate1.3% interest rate

COLA Changes Members with an effective retirement date or DROP begin date before August 1, 2011 will not have a change in their 3% COLA.Members with an effective retirement date or DROP begin date before August 1, 2011 will not have a change in their 3% COLA. Members with an effective retirement date or DROP begin date on or after August 1, 2011 will have an individually calculated COLA that is a reduction from 3% based on the Division of Retirement’s formula.Members with an effective retirement date or DROP begin date on or after August 1, 2011 will have an individually calculated COLA that is a reduction from 3% based on the Division of Retirement’s formula.

Questions? Contact the Office of Human Resources at extension 2903 or at extension 2903 or Jennifer Neidhardt: Debbie Bundy: