The Pension Plan is a traditional “defined benefit” plan. It is designed for employees who want a guaranteed monthly retirement benefit and who are not comfortable with choosing investments and managing their own portfolio.
In this type of plan, you receive a guaranteed benefit that is based on a formula. This formula uses your salary, length of service, and other factors. While both you and your employer will contribute money to help fund the Pension Plan, you will not own an account or manage any investments. When you are eligible to begin receiving your benefit at retirement, it will be paid to you in monthly installments for the rest of your life. Options to continue payments to a qualified beneficiary after your death may also be available. You can designate any person, organization, trust, or your estate as your beneficiary.
Based on Florida law, you contribute 3% of your gross salary, beginning with your first paycheck, to your Pension Plan account. You cannot change the amount you contribute. Your employer also contributes a fixed percentage of your gross salary to your account. The percentage is based on your membership class as required by law.
Your Pension Plan benefit is guaranteed. It is determined by a formula using your FRS membership class, years of FRS service, and an average of your eight highest years of salary.1
1If you were hired prior to July 1, 2011, the formula uses an average of your five highest years of service.
Once you complete eight years of service, you qualify for a benefit that is payable when you reach retirement age as defined by the plan. If you leave FRS employment sooner, you own only your employee contributions.1
1If you were initially enrolled in the FRS prior to July 1, 2011, you qualify for a benefit (are fully vested) once you complete six years of service.
At retirement, you will receive monthly payments for your lifetime. You will have payment options that provide continuing payments to your qualified beneficiary after your death.
