FLORIDA RETIREMENT SYSTEM

CREATED DECEMBER 1970

DEFINED BENEFIT PLAN 401(A) IRC

NON-C0NTRIBUTORY SYSTEM

DROP ESTABLISHED 1998

FFllooriridada Retirement Retirement SystemSystem900 + Public 900 + Public

EmployersEmployers665,000 + Active Members665,000 + Active Members

288,000 + Retirees288,000 + Retirees

Over 390 Million Dollars inOver 390 Million Dollars in Monthly BenefitsMonthly Benefits

More than $26 Million in Health More than $26 Million in Health Insurance Subsidy (HIS)Insurance Subsidy (HIS)

SERVICE RETIREMENTSERVICE RETIREMENT

DISABILITY RETIREMENTDISABILITY RETIREMENT

SURVIVOR BENEFITSURVIVOR BENEFIT

System Benefit System Benefit TypesTypes

SeService rvice RetirementRetirement

Normal Normal RetirementRetirement Early Early RetirementRetirement Deferred Deferred RetirementRetirement

Deferred Retirement Deferred Retirement Option ProgramOption Program

(DROP)(DROP)

Effective July 1, 1998Effective July 1, 1998

Vested and Eligible for NormalVested and Eligible for Normal Retirement BenefitsRetirement Benefits

Must establish Future Termination DateMust establish Future Termination Date

Twelve (12) Months to DecideTwelve (12) Months to Decide

Maximum of 60 MonthsMaximum of 60 Months

Regular Class MembershipRegular Class Membership

Example: Age 51 30 Yrs of ServiceExample: Age 51 30 Yrs of Service

11stst Window- Window- December 1, 2009 December 1, 2009 (Full Five Yrs)(Full Five Yrs)

22ndnd Window- Window- Anywhere Anywhere betweenbetween December 1, 2009 and 57 December 1, 2009 and 57 forfor the Full Five Yearsthe Full Five Years

Special Risk Special Risk MembershipMembershipExample: Example: Age 48 with 25 yrs of Special Age 48 with 25 yrs of Special

RiskRisk

11stst Window- Window- October 1, 2009 October 1, 2009(Full Five Yrs)(Full Five Yrs)

22ndnd Window- Window- Anywhere between Anywhere between October 1, 2009 and age October 1, 2009 and age 52 52 for the full five years.for the full five years.

Def

Def e

rer r

ed

Reti

rem

en

t O

pti

on

re

d R

eti

rem

en

t O

pti

on

Pro

gra

mP

rog

ram

DROPDROP

Retirement benefit is “Banked” while Retirement benefit is “Banked” while you continue to workyou continue to work

Earn interest compounded monthly atEarn interest compounded monthly at an annual rate of 6.5%an annual rate of 6.5%

DROP benefit increased July 1 for DROP benefit increased July 1 for 3% Cost-of-Living Increase 3% Cost-of-Living Increase (COLI)(COLI)

Deferred Retirement Deferred Retirement Option ProgramOption Program

DR

OP

DR

OP

Upon termination of employmentUpon termination of employment lump-sum payment of lump-sum payment of DROP benefitsDROP benefits

Rollover provision to reduce Rollover provision to reduce taxestaxes

Receive lifetime monthly benefitReceive 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 2nd through 12th months must suspend their benefits until they have been retired for 12 months.

July 1, 2010, this changes to the 7th through 12th 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 GainesIra L GainesState Retirement BenefitsState Retirement Benefits

AdministratorAdministrator850-488-6491850-488-64911-888-738-22521-888-738-2252

Ira.Gaines@dms.myflorida.comIra.Gaines@dms.myflorida.com