1. What’s New in the FRS? (Don’t Kill the Messenger!)
Presented by Brooke Stearns
Sr. Human Resources Manager
Osceola County

2. Changes that Affect You
Effective July 1st: 3% Mandatory Employee Contributions (pre-tax) 4.91% Employer Contribution for Regular Class TOTAL: 7.91% vs % last year

3. Other rates
NEW PRIOR Elected Officials 11.14% 18.64% Special Risk 14.10% 23.25% Sr. Management 6.27% 14.57% DROP 4.42%* 12.25% Judges 11.69% 21.79% Legislature 9.04% 16.34% *Effective July 1, 2011 – DROP participants are NOT required contribute 3%

4. Vesting
You are fully vested in your own contributions immediately If you were hired PRIOR to July, 2011 vesting rules remain the same: 6 years for Pension 1 year for Investment “High Five” is counted (AFC) If you were hired on or AFTER July 1, 2011 vesting is: 8 years for Pension “High Eight” is counted (AFC)
Must be terminated 3 calendar months. Cannot receive a hardship loan.
If you take out money: Pension Plan: do not receive credit but can buy back later. Investment Plan: forfeit an unvested contributions and service credit, be a retiree and will not be eligible for FRS membership upon rehire.
Employee contributions DO NOT earn interest.

5. Normal Retirement Date
Regular Class: If you were hired PRIOR to July 1, 2011 your Normal Retirement Date is age 62 and 6 years of service or any age with 30 years of service ON or AFTER July 1, 2011 your Normal Retirement Date is age 65 and 8 years of service or any age with 33 years of service Special Risk: If you were hired PRIOR to July 1, 2011 your Normal Retirement Date is age 55 and 6 years of service or any age with 25 years of service ON or AFTER July 1, 2011 your Normal Retirement Date is age 60 and 8 years of service or age 57 with 30 years of service.

6. DROP
New interest rate: 1.3% vs. 6.65% prior to July 1st. COLA: There will be no Pension Plan COLA on FRS earned after July 1, 2011 DROP COLA is 3% PRIOR to August 1, 2011 You will have a new COLA based on a calculation in you enter DROP on or AFTER August 1, 2011
Roughly a 12% reduction in the ending balance after 5 years.

7. Switching from Pension to Investment
Make sure you are vested before making the change Call your County FRS Liaison Contact MyFRS Financial Line

8. Where are we headed?
Class Action Lawsuit – Trial set for October 26, 2011, at 7:30 AM Continue to Contact Your Representatives

9. Proactive Practices Create Positive results!
Be Informed Contact your Legislature and local Representatives Plan for YOUR future

10. Thank you!
QUESTIONS?