FLORIDA RETIREMENT SYSTEM  CREATED DECEMBER 1970  DEFINED BENEFIT PLAN 401(A) IRC  NON-C0NTRIBUTORY SYSTEM  DROP ESTABLISHED 1998

Florida Retirement System Public Employers 665,000 + Active Members 288,000 + Retirees Over 390 Million Dollars in Monthly Benefits Monthly Benefits More than $26 Million in Health Insurance Subsidy (HIS) Insurance Subsidy (HIS)

SERVICE RETIREMENT SERVICE RETIREMENT DISABILITY RETIREMENT DISABILITY RETIREMENT SURVIVOR BENEFIT SURVIVOR BENEFIT System Benefit Types System Benefit Types

Service Retirement Service Retirement Normal Retirement Normal Retirement Early Retirement Early Retirement Deferred Retirement Deferred Retirement

Deferred Retirement Option Program (DROP) Effective July 1, 1998 Vested and Eligible for Normal Retirement Benefits Retirement Benefits Must establish Future Termination Date Twelve (12) Months to Decide Maximum of 60 Months

Regular Class Membership Example: Age Yrs of Service 1 st Window- December 1, 2009 (Full Five Yrs) (Full Five Yrs) 2 nd Window- Anywhere between 2 nd Window- Anywhere between December 1, 2009 and 57 for December 1, 2009 and 57 for the Full Five Years the Full Five Years

Special Risk Membership Example: Age 48 with 25 yrs of Special Risk 1 st Window- October 1, 2009 (Full Five Yrs) 2 nd Window- Anywhere between October 1, 2009 and age 52 October 1, 2009 and age 52 for the full five years. for the full five years.

Deferred Retirement Option Program DROP Retirement benefit is “Banked” while you continue to work you continue to work Earn interest compounded monthly at an annual rate of 6.5% an annual rate of 6.5% DROP benefit increased July 1 for 3% Cost-of-Living Increase (COLI)

Deferred Retirement Option Program DROP Upon termination of employment lump-sum payment of lump-sum payment of DROP benefits DROP benefits Rollover provision to reduce taxes Receive lifetime monthly benefit

Reemployment after Retirement  After retirement or DROP termination, retired FRS members may be employed by any private employer or any public employer not participating in the FRS without affecting his/her FRS benefits.  However restrictions apply to employment with an FRS employer.

Reemployment after Retirement  Currently, any retired FRS member who is reemployed by an FRS employer during the first calendar month after retirement or DROP is not considered to have terminated employment.  July 1, 2010, this changes to first 6 months.  Currently, any retired member who returns to employment with an FRS employer during the 2 nd through 12 th months must suspend their benefits until they have been retired for 12 months.  July 1, 2010, this changes to the 7 th through 12 th months.

Renewed Membership  An employee that establishes a renewed membership (2nd retirement) before July 1, 2010, is covered by an FRS retirement plan until they retire again.  Renewed members who have had a break in service and return to FRS-covered employment after July 1, 2010, are still covered by renewed membership.  Retirees who initially return to FRS-covered employment on or after July 1, 2010, will not earn another retirement benefit.

Ira L Gaines State Retirement Benefits Administrator