Retirement

The Retirement Department is committed to assisting employees in their retirement planning, by providing vital information in a comprehensive and customer focused manner.

Retirement lobby days will be

Tuesday and Thursday from

9 a.m. - 4:30 p.m.

Retirement Information

Florida Retirement System

Prior to 2002, the Florida Retirement System offered one retirement option: the FRS Pension Plan. It provided a retirement benefit based on years of service at retirement, an employees' highest five years of pay and FRS membership class during the time an employee is with an FRS employer.

Today, employees have a choice to either participate in the FRS Pension Plan or participate in the FRS Investment Plan. The FRS Investment Plan lets employees decide how to allocate employers' monthly contributions among one or more investment funds.

Both FRS options are funded by the School Board of Broward County, Florida and the employee. Below is a summary of the key differences between the FRS Pension Plan and the FRS Investment Plan.

(See Pension / Investment Overview table below)

DIFFERENCES	FRS PENSION PLAN	FRS INVESTMENT PLAN
Plan Type	Defined benefit retirement plan.
Who Contributes	Monthly contributions are employer-employee paid.	Monthly contributions are employer-employee paid.
How it Works	Monthly contributions based on a percent of salary and FRS membership class - paid to a trust fund for all FRS members. Benefits are based on a formula (years of service, highest 5 years of salary, FRS membership class).	Monthly contributions based on a percent of salary and FRS membership class - paid to employees' accounts. Benefits are based on employees' account value (contributions plus investment earnings less expenses and losses).
Who Invests	The State Board of Administration (SBA) invests the Pension Plan Trust Fund by choosing investment strategies and investment firms.	Employees choose how contributions are allocated among various investment funds. The SBA chooses private investment firms to manage the investment funds.
Who Assumes the Investment Risk and Rewards	FRS and employers.	You.
Other Factors Influencing Employees' Benefit Levels	The length of an employee's FRS service is the most important, but so are other factors, including salary growth, FRS membership class, vesting, inflation and DROP participation.	The length of an employee's FRS service is the most important, but so are other factors, including salary growth, FRS membership class, vesting, inflation and DROP participation.
Vesting (Benefit Ownership)	If you enrolled in the FRS prior to July 1, 2011, you need to have 6 years of service with an FRS employer to be vested in your Pension Plan benefit. If you enrolled in the FRS on or after July 1, 2011, you must have 8 years of service to vest.	After one year of FRS service.
Amount of Benefit Paid at Retirement	Amount fixed by formula and employee's choice of payment option.	Amount based on employee's account value and employee's choice of payment option.
Will Benefits Continue to Grow if Employee Changes Employers?	Yes, if an employee moves to another public sector employer participating in the FRS. Otherwise, benefit is frozen until retirement.	Yes, if an employee moves to another public sector employer participating in the FRS. Otherwise, benefit is frozen until retirement
Retirement Income Options	Monthly lifetime payments, guaranteed by the FRS. Benefit reduction for early retirement. Other lifetime options provide for payments to surviving beneficiary. Under current law, benefits increase 3% each July.	Employee decides how and when the account balance is withdrawn after termination. Employee can use some or all of account to buy monthly lifetime payments guaranteed by a private sector insurance firm. Payments include survivor benefit options and a 3% annual benefit increase option.
Deferred Retirement Option Program (DROP) Participation	Employees are eligible to participate in DROP after reaching normal retirement eligibility.	Employees are not eligible to participate in DROP.

In addition to the above information, the Florida Retirement System also offers individuals an opportunity to increase their retirement benefit by purchasing:

prior service (as approved by the State of Florida, Division or Retirement)
certain military service
board approved leave of absence
in-state and / or out-of state service (as approved by the State of Florida, Division of Retirement)

To obtain more information on the Florida Retirement System, call FRS at (844) 377-1888, or call "My FRS Financial Guidance Line" at (866) 44-My-FRS/(866) 446-9377 for the Investment Plan.

Social Security

The three major elements of your retirement portfolio are benefits from pensions, savings and investments, and Social Security benefits.

To help you plan for retirement, each year the Social Security Administration sends you your personal Social Security Statement, which gives you an estimate of the monthly benefit amounts you and your family may qualify for now and in the future.

Choosing the month you start to get benefits is an important decision. Social Security Administration representatives will be glad to discuss it with you and answer any questions you may have.

To obtain more information on Social Security or related services, you may contact Social Security Administration at (800) 772-1213.

BENCOR National Plan

The BENCOR National Plan includes two tax-qualified, defined-contribution retirement investment plans. Approved by the Internal Revenue Service (IRS) and offered by BENCOR, Inc. (BENCOR), the Plan is divided into two parts: the FICA Alternative Plan and the Special Pay Plan.

To obtain more information on the BENCOR National Plan, you may contact BENCOR, Inc. at (954) 425-0665 or toll free (866) 296-9712.

BENCOR Special Pay Plan

BENCOR Special Pay Plan FAQ

Special Pay Plan Easy Access

FICA Alternative

FICA Alternative FAQ

FICA Alternative Easy Access

BENCOR Advisors:

Kevin Semisch (954) 425-0665

John Novoa (954) 425-0665

Deferred Retirement Option Program (DROP)

The Deferred Retirement Option Program (DROP) is a voluntary retirement program that is available only to FRS Pension Plan members who qualify for normal retirement. The DROP allows you to effectively retire while delaying your termination. As a participant of the DROP, you begin accumulating your retirement benefits, while delaying your employment termination for up to 96 calendar months from the date your DROP participation begins. While in the DROP, you earn a salary while your monthly retirement benefits are held in the FRS Trust Fund on your behalf. Please refer to Page 5 of the DROP guide, located on FRS' website for DROP eligibility requirements. Please refer to Page 17 of the DROP guide for information about instructional personnel and administrators who may be allowed to extend DROP participation beyond 96 calendar months.
Before you participate in the DROP, you earn one (1) month of retirement service credit for each month you have compensation reported to the division of retirement for work performed. When you enter the DROP, you are retired, and you stop earning retirement service credit. While participating in the DROP, your monthly retirement benefits accumulate in the FRS Trust Fund while you continue your FRS-covered employment and earn tax-deferred interest. Tax-deferred interest means that you pay any taxes owed when you receive the interest, instead of when the interest was earned.
When you terminate your employment at the end of your authorized DROP participation period, you will receive your DROP payout and begin receiving your monthly retirement benefit in the same amount determined at retirement, plus any applicable cost of-living adjustment. The longer you participate in the DROP, the greater your financial gain; however, even short periods of DROP participation can offer enough financial advantages to make participation the right choice for you. For many, the DROP offers the best of both worlds by providing the financial security of a guaranteed lifetime monthly benefit and an opportunity to accumulate additional savings while you are working.

Deferred Retirement Option Program (DROP) Flyer

Deferred Retirement Option Program (DROP) Packet

Thinking of Retirement

Contact Us

RESOURCES

Re-Employment After Retirement Chart

FAQs

Understanding the FRS Investment Plan

Understanding the FRS Pension Plan

LINKS

Retirement Income Calculator