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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
Normal Retirement – Pension Plan
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
What do I need to do?
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
When should I begin?
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
FRS will not accept applications more than 6 months in
advance of your effective retirement date.
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.
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
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.
This option does not provide a continuing benefit to your
beneficiary.
If you are married and select Option 1, your spouse must
acknowledge your selection.
Option 1
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.
Option 2
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.
No further benefits are payable after both you and
your joint annuitant are deceased.
Option 3
An adjusted monthly benefit payable to you while both you
and your joint annuitant are living.
Upon the death of either you or your joint annuitant, the
monthly benefit payable to the survivor is reduced to two-
thirds of the monthly benefit received when both are living.
No further benefits are payable after both you and your joint
annuitant are deceased.
Option 4
What is the Deferred Retirement Option Program (DROP)?
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.
What is the Deferred Retirement Option Program (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).
When can I begin DROP?
You can begin the DROP when you are vested and have reached your normal
retirement date (if you have FRS service prior to July 1, 2011), as follows:
Your normal retirement date is either when you are vested (6
years) and reach age 62, or when you complete 30 years of
service, whichever comes first.
If you become vested after age 62, your normal retirement date
is the month following the month you reach 6 years of service.
DROP Eligibility
You must elect DROP participation within 12 months after you first reach
your normal retirement date unless you are eligible to defer as follows:
If you have FRS service prior to July 1, 2011 you may…
…defer DROP enrollment if you complete 30 years of
service before age 57, you may defer DROP and elect to
begin participation at any time between completing 30 years
and reaching age 57.
Can I defer starting DROP?
You are eligible to defer DROP enrollment
if you are:
Members in Instructional positions defined
by s. 1012.01(2)(a)-(d), F.S., may begin DROP
at any time after reaching normal retirement.
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.
If you are considering changing from the Pension Plan to the
Investment Plan, you should review the Fund Profiles, the Investment
Fund Summary, and the Annual Fee Disclosure Statement posted in
the “Investment Funds” section at MyFRS.com before selecting any
investment funds or making an election.
One-Time Opportunity to Switch FRS Retirement Plans
Before using your 2nd Election, get unbiased help from the FRS. Review your plan options carefully.
Once you make a 2nd Election, that decision is final unless you timely notify the MyFRS Financial
Guidance Line that you wish to cancel your election. Once your 2nd Election is finalized, you must
remain in your chosen plan until your FRS-covered employment ends and you retire. The FRS
offers two ways to get free help:
Call the toll-free MyFRS Financial Guidance Line at 1-866-446-9377, Option 1 (or TRS 711).
Financial planners will provide personalized, unbiased information based on your individual situation. Get
solid financial guidance from someone who is not trying to sell you investment or insurance products.
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.
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 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 of service credit, you could forfeit the amount transferred from the Pension Plan!
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…
If you are in the FRS Investment Plan – you can switch to the FRS Pension Plan
If you buy in to the pension plan… 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.
After your buy-in cost is calculated…
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.
CAUTION
Some outside investment agents may try to
persuade you to use your 2nd Election. Make
an informed decision by calling the MyFRS
Financial Guidance Line and speaking with an
unbiased financial planner to see whether
making a 2nd Election is in your best interests.
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
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.
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).
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.
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.
Note: Employment with an FRS employer includes any full-time, part-time, temporary, other personal services (OPS), contractual services or non-contractual services with your previous employer or any other FRS employer.
But can I volunteer? According to the Department of Labor, an individual who performs hours of service
for a public agency for civic, charitable, or humanitarian reasons, without promise, expectation or receipt of compensation for services rendered, is considered to be a volunteer
A few examples of non-paid services recognized as volunteer services
Booster Club activities Coaching athletics 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
Questions to assist in determining whether a retiree is a true volunteer.Expected answer: YES Expected answer: NO
Is the activity less than a full-time occupation?
Is the work otherwise performed by other employees?
Are the services of the kind typically associated with volunteer work?
Have regular employees been displaced or have vacant positions remained open to accommodate the volunteer?
Does the worker receive (or expect) any benefit from the entity to which it is providing services?
Contact Information:
Sheila Bennett, Retirement Coordinator
(352) 253-6535
Retirement and Payroll
.
It's nice to get out of the rat race, but you have to learn to get along with less cheese.
Chris CarmicklePayroll Manager
Lake County Schools
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.
Terminal / Sick Leaveinformation 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.
Terminal / Sick Leave information as of 10/01/2012
The value of terminal leave is determined by
1. 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.
2. Length of service in a qualified position with Lake County Schools - not in an FRS position
35% 0 – 3 years
40% 3 – 6 years
45% 6 – 9 years
50% 10 – 12 years
100% > 12 years
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.
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
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.
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.
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
The 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.