1. Retirement Planning Seminar

2. Retirement Services Staff
Adrienne Rollins, Senior Manager
Sandra Brookins-Crudup, Retirement Specialist
Kathy Martoi, Retirement Specialist
Joanne Miller, Retirement Specialist
Olga Rivera, Secretary 2

3. Types of Retirement Normal/Regular Retirement
Irrevocable Letter of Retirement (ILR)
DROP
Early Retirement
Disability Retirement
Investment Plan
Applies to anyone initially enrolled before 7/1/2011

4. Websites www.FRS.Myflorida.com FRS Pension Plan –create estimates
DROP participants-see finalized DROP Accruals
may need Personal Identification Number (PIN)-if you have not created a
username & password before (it will be mailed to home address on record)
Investment Plan participants
updated by State Board of Administration (SBA)
Ernst & Young Financial Planners
New Hire 5 month window
2nd choice election
may need Personal Identification Number (PIN)
go to Departments
Retirement Services
Current Employees
access Retirement, Sick Leave Bank or TSA’s
access website links for Bencor, SSA, FRS (Pension monthly estimates or Investment Plan)

14. Normal/Regular Retirement
Normal retirement requires either
- 30 years of FRS service regardless of age OR
- Age 62 with at least 6 years of FRS service
Irrevocable Letter of Retirement (ILR)
- OCPS option only
Must meet Normal/Regular retirement age
- Not a DROP participant
- Must establish future termination date
- Maximum of 60 months or 5 years
- Sick Leave sent to BENCOR while continuing to work
- Continue to earn service credit and salary history

15. Pension Plan Basics Guaranteed lifetime monthly benefit
Based on a formula
Non-contributory system 1975-June 2011
Defined Benefit Plan
No Risk to the Employee

16. Purchasing Years of Service in the Pension Plan
Out-of-state & Federal Public Service
Withdrawn or Refunded Service
Leave of Absence
Military Service
OCPS pays the military leave of absence on behalf of the employee that occurred prior to 07/01/2011
If all or part of your military leave occurs on or after July 1, 2011, you must pay any required employee contributions, plus interest
-Military Leave of Absence - must provide copy of leave form, orders and DD-214 upon return to OCPS

17. Service Credit July 1 through June 30 FY
You receive service credit each month
that you work/receive a check.
Less than Complete Work Year
10 month employee (5/10 = .50)
12 month employee (5/12 = .42)

18. Value Per Year Regular Class Service SM Service 2.00%
Age 62 or 30 years 1.60%
Age 63 or 31 years 1.63%
Age 64 or 32 years 1.65%
Age 65 or 33 years 1.68%
SM Service %
Special Risk %

19. Basic Benefit Formula Average of HIGHEST five years of salary/earnings
Years of Service x Value per Yr x AFC = Option 1 Annual Benefit at Normal Retirement
Divided by 12= (Option 1) Monthly Benefit

20. Benefit Payment Options
Choose an option at Retirement/DROP
Entry:
Option 1: No benefit after death
Option 2: Up to ten years guaranteed to
beneficiary
Option 3: Benefit continues to joint annuitant
Option 4: Reduced continuing benefit to survivor

21. Beneficiary Designation
Option 1 or 2 Can be anyone (Spouse must sign
SA-1 form)
Option 3 or 4 Spouse or Joint
Annuitant
Everyone must have a beneficiary on file!

22. DROP Must be vested and reached normal retirement age or years
Job Title Eligibility
Administrators Must 30 yrs or
Registered Nurses age 62 with 6 yrs to maximize
PRE-K Paraprofessionals months participation
PRE-K Teachers
Occupational Therapists
Physical Therapists
All Other Classified
Exception-If you complete 30 yrs of service prior to age 57, you may defer until age 57 to complete 60 months of DROP. You must enter prior to age 58.
If you are (K-12) Instructional/Paraprofessionals/School Psychologists, once you are eligible for DROP you may enter at any time

23. DROP (cont’d) DROP always begins the 1st of the month
You have until the end of that month to begin participation in DROP
Must establish future termination date
Maximum of 60 months or 5 years
3% employee contribution stops upon DROP participation
Retirement benefits “Banked” while continuing to work
Earn 6.5% interest compounded monthly on benefits(prior to 07/01/2011)
Effective 07/01/2011 DROP rate changed to 1.3%
Effective 07/01/2011 COLA based on service years through 06/2011

24. DROP Payout Options Cash Payout – Pay taxes Rollover – Defer taxes
Combination Cash Payout & Rollover
You have 60 days from you retirement date to make a decision about your DROP money or the state makes a decision for you
Keep your finalized DROP accruals showing your selected option. This is sent 6-8 weeks after you are in DROP from FRS
We review this information during your DROP Exit meeting

25. Early Retirement
Reduction (5% per year) based on number of months from normal retirement age of 62
Benefit reduces to zero at age 42

26. Disability Retirement
Must have at least 8 years of service for regular disability
Must be permanently/totally disabled; unable to perform work of any kind
May be in-line-of-duty (ILOD) or regular
Minimum guaranteed benefit
42% for ILOD
25% for regular
Vesting not required for ILOD

27. Disability Retirement (cont’d)
Requires certification by at least 2 physicians licensed in the state of Florida
Needs employer statement completed by Retirement Services
State makes final determination-normally days once all paperwork has been received by FRS

28. FRS Website for Pension Plan Members
-view estimates for retiring or
-view DROP estimates/finalized accruals
-updated by Florida Department of
Management Services

48. FRS Investment Plan
Enrollment of school district members began effective October 2002
Defined Contribution Plan
Employee assumes the risk
Lump Sum pension instead of a monthly pension check

49. Investment Plan Basics
Vested after 1 year of service
Normal retirement without possible tax penalties Age 59 ½
No DROP Program
Reemployment rules discussed at distribution by FRS.
The 3% employee contribution continues until you retire

50. FRS Retirement Plan Election
FRS Resources
- MyFRS Financial Guidance Line -Unbiased
Pension or Investment Plan
One time 2nd Election to switch plans
Must be an active employee at the time of the election and receive service credit (paycheck) during the month you make this election!

51. Additional Investment Plan Info…
To retire with OCPS in the Investment Plan:
If initially enrolled with FRS prior to 07/01/2011, then you must have 30 years of service regardless of age or have 6 years of service and at least 59 ½ years of age
If initially enrolled with FRS on or after 07/01/2011, then you must have 33 years of service regardless of age or 8 years of service and at least 59 ½ years of age

52. Investment Plan Website
Investment Plan participants
Ernst & Young free Financial Planners
New Hire 5 month window info
2nd choice election
may need Personal Identification Number (PIN)-this
is mailed to you from Ernst & Young (if you don’t
have it call ) State Board of
Administration (SBA)

54. Please visit tables during break & end
Pre-Tax Retirement Savings Plans
OCPS offers 9 different 403(B) & 457 companies
All Pre-Tax Retirement Savings plans with OCPS are voluntary contributions made by the employee to reduce withholding taxes
2017 – 403(B) Basic Limit is $18,000
May have additional $6,000 (if age 50 or older in the calendar year)
May have additional $3,000 (if 15 or more years with current employer
Total (B) max is $27,000
Basic Limit is $18,000
- May have additional $6,000 (if age 50 or older in the calendar year)
Total 2017 to 457 max is $24,000
Please visit tables during break & end

64. TSA Consulting Group (tsacg.com) 2 – 3 Business Days for Processing

65. TSA Consulting Group Can print certificate in minutes

66. Questions & Answers B R E A K

67. Terminal Sick Leave Pay Percentage at Retirement
An employee receives terminal pay as follows:
0-3 Years * %
Years %
Years % %
12.01-over %
*Based on consecutive years of service at the time of retirement.
Note: Revision to contract effective 07/01/08: If the person has worked at least five consecutive years
prior to retirement, previous time at the district may be counted.

68. Sick Leave Payout Contributions during DROP or IRL
Multiple Annual Contributions
- Increasing percentage of Sick leave at end of each year of DROP
5 Year example: Year 1 20%
Year 2 25%
Year 3 33%
Year 4 50%
Year %

69. Bencor Special Pay Plan
Tax Savings
-Eliminate Social Security and Medicare Taxes
-Defer Federal Income Taxes

70. Special Pay Comparison
With BENCOR Plan
$ 10,000.00
$ 0 Fed Tax Deferred
$ 0 FICA Saved
$ 0 Medicare Saved
$ 10, Deposited
Current w/o Plan
$ 10,000.00
2, Fed Tax
FICA
Medicare
6, Net Pay

71. Plan Features Liquidity & Flexibility Safety Tax-Deferred Earnings
Optional Investment Accounts
Loans
Probate Avoidance

72. Account Types General Account – Fixed Interest
- Guarantee of Principal & Interest – Guaranteed by Standard Insurance Company
- Stable Asset Fund
Currently 1.80% for 1st quarter
- No fees assessed against account
- All deposits go into this account unless you choose otherwise
Market Based Investment Options
- 16 Mutual Fund Choices
- Account Management Fees

73. Account Options Take money for cash or rollover Rollovers – In & Out
Money available within 3 to 5 working days
Rollovers – In & Out
Change Investments
Over the phone, online
Loans
½ of account balance up to $50,000
(one time $100 fee)
Use funds according to IRS regulations
Call BENCOR Administrative Services for funds or
go online to

75. Bencor Special Pay Plan
OUR LOCAL REPRESENTATIVES ARE:
Michael Borgailo, Danny Gay, David Payne or Travis Payne

76. Applying For Retirement/DROP Entry
Apply for retirement 1 to 3 months in advance, at least by TERMINATION date to prevent unnecessary delay, call for appt with Retirement Services.
Need birth date verifications & marriage certificate for member and spouse for some options
Need spousal acknowledgement, if married
Designate a beneficiary (Name, SSN, DOB, Address & Phone Number)

77. After Retirement Benefit is subject to withholding tax
- Default is married with three allowances
Cost of Living Increase
- Based upon years of service thru 06/2011
Health Insurance Subsidy (HIS)
-Added to your monthly benefit
-Not applicable during DROP
-Years of Service X $5.00
Maximum Amount $150.00
Minimum Amount $

78. After (cont’d)
Once a benefit payment is cashed or deposited, retirement is final
- Option cannot be changed
- No service may be added
Benefits paid monthly
Direct deposit required effective 7/1/2000

79. Reemployment After Retirement
Restrictions for the first twelve (12) months of retirement:
Termination Period- Months one (1) - six (6):
No work for any FRS employer, no exceptions.
Reemployment Period - Months seven (7) – twelve (12):
If you work for an FRS employer, you must forfeit your benefits, regardless of the position.
You may volunteer after retirement and/or DROP if:
-No Compensation
-You do not occupy a regularly established position
-Register as a volunteer through OCPS.net
After one year: No restrictions
No Restrictions on private employment

80. Renewed Membership
Retirees initially reemployed in a retirement-covered position on or after July 1, 2010, are NOT eligible for renewed membership. (can not earn a second retirement)

81. 2011 Legislative Changes DROP interest changed to 1.3%
3% employee pre-tax contributions began July 1, 2011
Renewed Membership
COLA
All service earned through June 2011 receives a 3% COLA
Service earned July 2011 and after – 0% COLA
Formula:
Years of service through June 2011 divided by Years of service at
retirement X 3%
20/21 X 3% = 2.86%
29/30 X 3% = 2.90%

82. Members Initially Enrolled on or after July 1, 2011
Vesting-8 years of creditable service
Normal Retirement
- Age 65 or 33 years of service before age 65
Average Final Compensation (AFC)
- Average of the highest 8 fiscal years of salary

83. Renewed Membership (effective 07/01/2017)
2017 Legislative Changes
Senate Bill 7022
Renewed Membership (effective 07/01/2017)
The bill provides for renewed membership in the Investment Plan for reemployed retirees of the Investment Plan
Renewed membership will be available July 1, 2017 or after (retroactive membership prior to July 1, 2017 will not be provided). The bill does not provide Pension Plan renewed membership.
Renewed members will pay the 3% employee contribution rate

84. 2017 Legislative Changes Continued..
Election Period Extended (effective January 1, 2018)
The initial retirement plan election period has been extended from 5 months to 8 months following the month of hire. This is applicable to all members initially enrolled in the FRS on or after January 1, 2018.
It also applies to members who were initially enrolled in the FRS prior to January 1, 2018, if they terminated employment during the initial election period without making an election and return to FRS-covered employment on or after January 1, 2018.

86. Please keep ALL beneficiary information updated!
Insurance Benefits
Coverage normally ends the last day of the month in which you separate service
Upon retirement, one opportunity to continue OCPS health insurance
Can continue for your lifetime by paying premiums
Rates are negotiated annually and are effective October through September
Insurance Benefits or CISCO
Reminder:
Please keep ALL beneficiary information updated!

88. Office of Retirement Services
(Menu Path: Select Departments, Retirement Services, Current Employees)
DISCLAIMER
If questions arise as a result of this presentation or the materials provided, Chapter 121, Florida Statutes Chapter 605 Administrative Code and the Internal Revenue Code shall remain the final authorities.