1. Spring Retirement Meeting
March, 2018

2. Pension Plan (Monthly Retirement benefit for a lifetime)
AS a regular Lake County School Employee, you are a member of the Florida Retirement System (FRS).
There are two types of Retirement Plans available with FRS.
Investment Plan (401K Type Investment Plan Payable in a lump sum as a cash out or rollover to another qualified retirement plan)
Pension Plan (Monthly Retirement benefit for a lifetime)

3. INVESTMENT PLAN RETIREMENT
For Florida Retirement System members who are in the Investment Plan, retirement can occur at any time after the one year vesting period required by FRS. The Investment Plan Retirement is not limited by age.
HOWEVER, Keep in mind, if employment ends and retirement occurs BEFORE the year you turn age 59-1/2 , and a Cash Disbursement is requested, your Investment funds received may be subject to an IRS early withdrawal penalty of 10% when filing your tax returns.
There will also be a mandatory 20% income tax deduction on Cash Disbursements. A PIN number will be required to receive a disbursement.
You are considered retired when a distribution is requested from your Investment account.

4. Good new for Investment Members
Effective July 1, 2017, Senate Bill 7022 was signed into law.
One of the items included in this bill is the ability for members in the Investment Plan, who have taken a distribution of their retirement funds in the past, to rejoin the Investment Plan after one full year of employment, starting at the July 1, 2017 date.

5. PENSION PLAN MEMBERS

6. Normal Retirement – Pension Plan
For employee’s hired prior to July 1, 2011, Normal Retirement is:
Vested (at least 6 years of creditable service in the FRS)
Age 62 OR 30 years of creditable service, whichever comes first
For employee’s hired after July 1, 2011, Normal Retirement is:
Vested (at least 8 years of creditable service in the FRS)
Age 65 OR 33 years of creditable service, whichever comes first

7. What are my steps to begin retirement?
Schedule an appointment with the Retirement Coordinator
Complete Application for Service Retirement
Sign forms in front of a notary
Submit forms to the Division of Retirement

8. When should I begin? Complete all the necessary calculations
FRS prefers to receive Application for Service Retirement 3 months prior to termination date. This allows the division time to:
Complete all the necessary calculations
Add your name to the retired payroll
Set up Direct Deposit forms for monthly benefit
FRS will not accept applications more than 6 months in advance of your effective retirement date.
This also allows enough time for the Direct Deposit forms to be set up for your monthly Pension Payments.

9. What will I need?
When you apply for retirement, you must furnish proof of your age.
The division must receive the required proof of age before you can begin receiving benefits.
If you choose benefit Option 3 or 4, you must also furnish proof of age for your joint annuitant and a marriage certificate if joint annuitant is your spouse.

10. What proof of age will be accepted?
The division will accept a readable copy of one of the following documents:
Birth certificate
Delayed birth certificate
Census report more than 30 years old
Life insurance policy more than 30 years old
Documentation from Social Security Administration stating the date of birth has been established for payment of benefits to you or your joint annuitant
Certificate of naturalization
RECENTLY ADDED: Valid Florida Driver License or a passport issued after January 1, (Driver’s License with have a Gold Star in top right corner)

11. Pension Benefit Options
What are the four Pension benefit options?
Pension Benefit Options

13. The maximum monthly benefit payable to you for your lifetime
The maximum monthly benefit payable to you for your lifetime. Upon your death, the monthly benefit will stop and your beneficiary will receive only a refund of any contributions you paid which are in excess of the amount you received in benefits. If you are married and select Option 1, your spouse must acknowledge your selection.

14. Monthly benefit that is less than the Option 1 benefit, and the benefit is payable to you for your lifetime. In the event you die within ten years after your retirement date, including any period of DROP participation, the same monthly benefit will be paid to your designed beneficiary for the balance of the 10-year period. No further benefits are then payable. If you are married and select Option 2, your spouse must acknowledge your selection

16. Joint Annuitant is described here
Joint Annuitant is described here. For the parent/grandparent or legal guardian joint annuitant, you must provide at least half of their support to claim them as a joint annuitant.

17. A reduced monthly benefit payable for your lifetime
A reduced monthly benefit payable for your lifetime. Upon your death, your joint annuitant, if living, will receive a lifetime monthly benefit payment in the same amount as you were receiving. WITH ONE EXCEPTION. If the Joint annuitant is a child under the age of 25, the Option 1 amount will be paid to the child until they are at the age of 25. And then the benefit stops. If the child is disabled, the benefit would pay throughout the length of the disability. No further benefits are payable after both you and your joint annuitant are deceased.

18. Higher payout than Option 3, however it is reduced by 1/3 when either the member or joint annuitant.

19. Deferred Retirement Option Program
DROP

20. The DROP is a Pension Plan program under which you may retire and have your monthly retirement benefits remain in the Florida Retirement System (FRS) Trust Fund instead of being paid directly to you or deposited in your bank. Your benefits will earn interest for you, tax deferred, for as long as you participate in the DROP. In the meantime you continue to work for your FRS employer for a specified and limited period up to the date you pre-selected to stop participation in DROP. When the DROP period ends, you must terminate employment. At that time, you will receive payment of the accumulated DROP benefits, and begin receiving your FRS monthly retirement benefit (in the same amount as determined at retirement, plus annual cost-of-living increases).

21. WHEN AM I ELIGIBLE TO ENTER DROP?
You must elect DROP participation within 12 months after you first reach your normal retirement date unless you are eligible to defer *
You lose one month of participation for each month that you delay.

22. *Who can defer starting DROP?
You are eligible to defer DROP enrollment if you are:
Members in Instructional positions defined by s (2)(a)-(d), F.S., may begin DROP at any time after reaching normal retirement.
Your 30 years of service is completed BEFORE the age of At this time you can enter DROP at the age of 57.

23. What if I want to switch plans?
2nd Election

24. One-Time Opportunity to Switch FRS Retirement Plans
After making your initial Florida Retirement System (FRS) retirement plan selection, you can change plans one time during your FRS working career. This plan change – called your “2nd Election” – IS NOT FOR EVERYONE, but it could be right for you.
A 2nd Election can only be made while you are ACTIVELY employed. Not during unemployed summer months or while on medical leave.

25. One-Time Opportunity to Switch FRS Retirement Plans
Before using your 2nd Election, get unbiased help from the
FRS FINANCIAL GUIDANCE LINE
Once you make a 2nd Election, that decision is final. Once your 2nd Election is finalized, you must remain in your chosen plan until your FRS-covered employment ends and you retire.
Log in at MyFRS.com and select the 2nd Election Choice Service to see your projected Retirement benefits under both plans. You can change the information to better match your life circumstances.

26. If you are in the FRS Pension Plan – you can switch to the FRS Investment Plan
What this means to you:
No cost to you!
The present value of your Pension Plan benefit (called an accumulated benefit obligation, or ABO) will become your opening Investment Plan account balance.
You will be fully vested in the money you transfer from the Pension Plan to the Investment Plan after you have 6 years (or 8 years) of service credit under the FRS.
You will be vested in new contributions if you have at least 1 year of FRS-covered employment.
If, however, you terminate employment with less than 6 years (or 8 years for new employees) of service credit, you could forfeit the amount transferred from the Pension Plan!
Yellow note: Say you began work in August 2011 AFTER the vesting requirement changed to 8 years. And you have been working now for 4 years. Say your started in Pension and now you want to change to investment. If you terminated employment before 8 years of service, all of the contributions from your employer will be forfeited and you would have what you have contributed since your election into the Investment plan.

27. If you are in the FRS Investment Plan – you can switch to the FRS Pension Plan
What this means to you:
Your Investment Plan service will count toward the Pension Plan’s 6-year vesting requirement
You must “buy in” to the Pension Plan using the money in your Investment Plan account.
The FRS will calculate your buy-in cost…

28. If you are in the FRS Investment Plan – you can switch to the FRS Pension Plan
After your buy-in cost is calculated…
If you buy in to the pension plan…
If there isn’t enough money in your Investment Plan account to cover the buy-in cost, you must make up the difference using your personal funds.
You may be permitted to roll over funds from another eligible retirement plan to help pay the difference.
Note: The buy-in cost increases monthly.
And have extra funds left in your Investment Plan account, this surplus will remain in your Investment Plan account and you will continue to manage the funds as you did before.
However, your Investment Plan money will not be available for distribution until you retire and begin receiving your Pension Plan benefit.

29. CAUTION
Some outside investment agents may try to persuade you to use your 2nd Election. Make an informed decision by calling the My FRS Financial Guidance Line and speaking with an unbiased financial planner to see whether making a 2nd Election is in your best interests.

30. Reemployment

31. Reemployment after retirement or at the conclusion of DROP participation?
After you retire under the FRS, you can work for:
Any private employer
For any public employer not participating in the FRS
For any employer in another state, without affecting your FRS benefits

32. Reemployment limitations with FRS-participating employers
There are, however, certain termination requirements and reemployment limitations that affect your retirement benefit if you are employed with FRS-participating employers during the first 12 calendar months after your effective retirement date without Deferred Retirement Option Program (DROP) participation or after your DROP termination date.

33. The termination requirements and reemployment limitations with FRS-participating employers are:
If you return to work during the first six calendar months of your retirement or after your DROP termination date, you are not retired. Your retirement application is voided and all retirement benefits, including any funds accumulated during your DROP participation, must be repaid, by you, to the FRS Trust Fund. This restriction applies even if the particular position you hold is not covered by the FRS (such as a substitute).

34. The termination requirements and reemployment limitations with FRS-participating employers are:
You may not receive both a salary and a retirement benefit in the same month during the seventh through twelfth calendar months of your retirement or after your DROP termination date. There are no exceptions to this reemployment limitation during this period. This restriction applies even if the particular position you hold is not covered by the FRS. You must inform us if you work for an FRS employer during the reemployment limitation period.

35. The termination requirements and reemployment limitations with FRS-participating employers are:
There are no limits on working for an FRS employer after you have been retired for 12 calendar months.
If you are reemployed with a participating employer, you will be required to sign a statement that your reemployment does not violate these provisions.

36. But can I volunteer?
YES, The Division of Retirement encourages retirees to volunteer and give back to their communities across the great state of Florida.
You may NOT receive any compensation for volunteering.
You can NOT be taking the place of a potential employee or performing work related to your job before retirement.

37. A few examples of non-paid services recognized as volunteer services
​Booster Club activities
Coaching athletics (Not as a paid Lay Coach)
Courtesy Faculty positions with universities
Guardian Ad Litem (for children and adults seniors)
Library/Media/ Cafeteria assistance
School guard
School campus clean-up
Trip chaperone
Tutor, mentor and literacy programs in K-12 schools
Retirement…..

38. Sheila Bennett, Retirement Coordinator
Contact Information:
Sheila Bennett, Retirement Coordinator
Retirement:
Where Every Day is a Saturday!!!
RETIREMENT OFFICE:
DISTRICT OFFICE
201 W. Burleigh Ave (HWY 441) in Tavares

39. Social Security Administration
Visit the website at

40. Go to the Social Security Website at www.ssa.gov

41. Scroll down the page until you find the “Retirement Estimator “

42. You will be directed to a new web page that looks like this.

43. Scroll down this new web page until you see the Estimate Your Retirement button and click on it.

44. You will then be directed to a page in which your personal
Information will be asked. This should be a secure website
and you can tell this by looking at the address at the top of
the web page. https/secure
Remember to agree to the Terms of Service at the bottom on the page before hitting the SUBMIT button.

46. This page will show you estimates of your Social Security at different age levels. If you would like to calculate a new estimate, simply click the “Add a New Estimate” button below and you can create an estimate for a different age and even a different salary.

47. Retirement and Payroll
It's nice to get out of the rat race, but you have to learn to get along with less cheese.
Connie Auld Payroll Manager Lake County Schools

48. Who pays you? Your pension is paid by the Florida Retirement System.
Lake County Schools Payroll has no direct involvement with the calculation of your monthly pension check, or your investment funds distribution.

49. Terminal / Sick Leave information as of 10/01/2012
Terminal Pay refers to the payment of Sick Leave
Has value only if you retire as your reason for separation from service.
“Normal Retirement” – retirement with either full or reduced benefits as provided by the Florida Statutes, but shall not mean disability retirement.
6 or 8 years of retirement creditable service required
When you enter DROP you retire
Your leave value is calculated at entry to DROP
Your leave value will not increase
Any employee entitled to accrued sick pay benefits shall have been under appointment to render services for the period immediately preceding termination, and shall not be under suspension from duty or have any charges pending which could result in dismissal from employment.

50. Terminal / Sick Leave information as of 10/01/2012
The value of terminal leave is determined by
Position
Administrative/Managerial employees are credited at the rate Sick Leave was earned back to 2004
Other employees are paid at the current rate of pay.
Length of service in a qualified position with Lake County Schools - in an FRS position
35% 0 – 3 years
40% 3 – 6 years
45% 6 – 9 years
50% 10 – 12 years
100% > 12 years

51. Terminal / Sick Leave information as of 10/01/2012
DROP
Your rate of pay and hours are frozen the last regular work day before you enter DROP (not summer work)
Any sick leave you earn after that date will not be paid at separation. Commonly referred to as “Use It or Lose It” sick leave.
You will have options for your payment of sick leave while you are in DROP. Read your options and ask questions before you make a selection. Your selection affects
Eligibility for Sick Bank
Ability to use sick leave days

52. Annual / Vacation Leave information as of 10/01/2012
Annual Leave refers to Vacation Leave
Any employee who voluntarily separates from employment or transfers from a twelve (12) month position to less than a twelve (12) month position in the District shall receive pay for accrued vacation leave at the time of transfer or voluntary separation provided he / she has been employed for twelve (12) continuous months.
Payment shall be made at the rate of pay at the time of voluntary separation from employment, retirement, transfer or death.
The maximum number of vacation days paid during any one employment period shall be forty-eight (48).
The employee will receive a lump-sum payment of accrued vacation leave or may request to extend his/her employment status through the last day of accrued vacation leave.

53. Annual / Vacation Leave information as of 10/01/2012
DROP
An employee’s vacation leave balance may be paid at entry to DROP and again at the exit from DROP.
The total days paid may not exceed forty-eight (48).
Payment shall be made at the rate of pay at the time of voluntary separation from employment, retirement, transfer or death. Therefore Vacation paid at entry to DROP and at exit from DROP may be at different rates of pay.
Vacation paid at entry to DROP is credited toward your AFR calculation.

54. How are Leave Payments distributed?
The lump sum payment of accrued sick (or vacation leave when applicable) will be disbursed to the District’s 401(a) salary deferral plan (The BENCOR Special Pay Plan)
Mandatory, not optional

55. Then what? The BENCOR Special Pay Plan
The BENCOR 401(a) Special Pay Plan (SPP) is a tax-qualified retirement plan for unused sick pay and vacation pay.
The BENCOR SPP is a powerful retirement tool offered by your employer. If you are entitled to sick and vacation pay the BENCOR SPP will help ensure you never pay Social Security and Medicare taxes on that money. It will also give you the ability to defer payment of the related income taxes until you receive distributions at retirement.
Note: Income taxes are payable upon withdrawal. Federal restrictions and a 10% tax penalty may apply to a withdrawal after termination of employment if you are not at least age 55 by year end.

56. Joshua Rose, Representative jrose@bencorrep.com
Special Pay Plan
Joshua Rose, Representative

57. Lake County Schools Special Pay Plan for Sick Leave and Annual Leave
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58. Required Disclosure: Read slide
This presentation is intended for general information purposes only and does not and is not intended to provide specific investment advice or recommendations’ for any individual.  It is suggested that you consult with your tax, legal and/or financial services professional regarding your individual situation. The views expressed are those of the presenter and may not necessarily reflect those held by PlanMember Securities Corporation (PSEC). Material presented is believed to be from reliable sources .PSEC makes no representation as to it accuracy or completeness.
A mutual fund is an investment vehicle that pools the money of many investors, and has varying degrees of risk depending upon the fund’s portfolio.  Mutual funds may invest in stocks, bonds, or cash and include the opportunity for the investor to purchase shares with various  pricing arrangements designed to meet their needs.  There are fees and expenses associated with investing in mutual funds, including portfolio management fees  and expenses and sales charges, which will affect the return on your investment.  These fees and charges may be front- or back-end sales charges or annual expenses. In addition, mutual funds generally allow shareholders to sell shares at any time and receive current market value.  Mutual fund investments, when held outside of a qualified retirement plan, are subject to tax.  You should consult with a qualified tax advisor before investing.  The investment return and principal value of an investment will fluctuate so that shares when redeemed, may be worth more or less than their original cost.
Not all of the concepts and ancillary programs described in this seminar are available through PlanMember Securities Corporation, Inc., but are only available exclusively through BENCOR, Inc. & Bencor Administrative Services(BAS)
As required by the IRS, you are advised that any discussion of tax issues in this material is not intended or written to be used, and cannot be used, (a) to avoid penalties imposed under the Internal Revenue Code or (b) to promote, market or recommend to another party any transaction or matter addressed herein.
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59. Required Disclosure con’t:
The Guaranteed Pooled Fund is a guaranteed separate account of TFLIC which invests in a diverse pool of high quality fixed-income instruments and is offered through a group annuity contract. The Guaranteed Pooled Fund is fully liquid for participant withdrawals and transfers. Participants can withdraw their Guaranteed Pooled Fund balances at book value (as permitted by the plan) without penalty for death, disability, retirement, termination of employment, hardship, loans, or the purchase of an annuity from TFLIC. Participants can transfer their Guaranteed Pooled Fund balances to other non-competing investment options (note: there are no competing investment options in the standard BENCOR investment array).
Credited interest rates are determined annually for existing assets and new deposits made during a calendar year. For the latest credited rate information, please log into your account at Both principal and interest are guaranteed by TFLIC.  Guarantees and interest are limited by the claims paying ability of TFLIC.
The Guaranteed Pooled Fund is a guaranteed pooled separate account offered through Transamerica Financial Life Insurance Company, 440 Mamaroneck Avenue, Harrison, NY 10528, which provides the guarantee of principal and interest.
Before investing in any mutual fund or variable annuity carefully read the prospectus(es) which contain information about the investment objectives, risks, charges, expenses and other information all of which should be carefully considered before investing.  For current prospectus(es) call (800)   The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than original purchase price.
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60. Why do you have the BENCOR Special Pay Plan?
Taxes
Funds in the BENCOR plan offer tax deferred growth and are not subject to SS/MC taxes.

61. Tax Savings & Deferrals
Federal Income Taxes Deferred
FICA – Social Security and MediCare Taxes
(7.65% Permanently Saved)
Account funds grow tax deferred until distribution. Saving of up to 7.65% for both participants and Districts, potentially representing millions of dollars in saving for the Districts.

62. Special Pay Comparison
With BENCOR Plan $ 10, $ 0 Fed Tax Deferred $ 0 FICA Saved $ 0 Medicare Saved $ 10, Deposited
Current w/o Plan $ 10, $ 2, Fed Tax $ FICA $ Medicare $ 6, Net Pay
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63. Contribution Limits Annual Maximum Limits Multiple Contributions
100% of Salary up to $52,000
Multiple Contributions
Made over DROP Years
Salary calculated from July 1st to June 30th
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64. Contributions during DROP
Multiple Contribution options:
Increasing percentage of Sick leave at end of each year of DROP
Year 1 20%
Year 2 25%
Year 3 33%
Year 4 50%
Year %
All Sick leave contributed upon entry into DROP
All Sick leave contributed upon exit of DROP
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65. Your Account General Account – Fixed Interest
Guaranteed Pooled Fund (Default option)
Fully backed and guaranteed by Transamerica Life Insurance Company*
Rates are reset each year on January 1st
Portfolio Rate Crediting
100% access to all money
No Fees, No Charges, Formula Driven**
Market Based Investment Options
16 Mutual Fund Choices
Account Management Fees
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66. Employee Account Information
Using your account (Subject to IRS Guidelines)
Withdrawals
Use as income or take as you need (Mandatory tax withholding)
*Loans
½ of account balance up to $50,000 (one time $100 fee)
Change Investments
Over the phone, online or through your representative
Rollovers – In & Out
* Caution: Failure to repay a loan may result in a taxable event and will be reported to the IRS. IRS penalties apply on all loan defaults. Loans can also reduce the accumulation value and difficulties may occur if additional consumer debt is incurred while a loan is outstanding."
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67. Plan Features Liquidity & Flexibility Safety Tax-Deferred Earnings
Optional Investment Accounts
Loans
Probate Avoidance
Safety – no market risk in Guaranteed Pooled Funds, guarantees limited to claims paying ability of TFLIC.

68. OUR LOCAL REPRESENTATIVE:
Joshua Rose
271 N. Pennsylvania Ave. STE 3
Winter Park, FL
(By appointment only)
(Local)
(Toll-free)
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69. Becky Frost Brown & Brown Insurance Becky.Frost@bbleesburg.com

70. Valery Insurance Agency Doug Valery dougv@valeryagency.com