FRS Programs Comparing the Plans Changing Plans (2024)

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How can we help? Investment Plan Pension Plan Investment Plan Pension Plan

FRS Programs Comparing the Plans Changing Plans (1)

FRS Programs Comparing the Plans Changing Plans (13)
You have a one-time (once in your active FRS career) opportunity after your Choice period ends, or you make your plan election, if earlier, to switch from the Investment Plan to the Pension Plan, or from the Pension Plan to the Investment Plan.
Your 2nd Election Enrollment must be received by the Plan Choice Administrator, Alight Solutions, while still earning service credit and before your date of termination.
Once you have made a retirement plan election you have a limited time period during which you may be able to cancel the election. See the FAQ "Can I cancel a retirement plan election once it has been made?" for more information.

FRS Pension Plan FRS Investment Plan
  • If you want to move to the Investment Plan after selecting the Pension Plan, you have two options:
    • You can leave your accumulated Pension Plan benefit in place, frozen at the time you make this choice, and your future employer and employeecontributions will go into your Investment Plan account. When you retire (provided you're vested), you'll receive a Pension Plan benefit and an InvestmentPlan benefit. If you enrolled in the FRS prior to July 1, 2011, you must have at least 5 years of service (if employed prior to July 1, 2011) or 8 years of service (if initially employed on or after July 1, 2011) in the Pension Plan to select this Hybrid option.

    • Or, you can move the present value of your Pension Plan benefit into the Investment Plan. If you do this, the amount that you are moving intothe Investment Plan will be subject to the Pension Plan's vesting schedule (see below). When you retire, you'll receive only an Investment Plan benefit.

  • If you terminate employment prior to meeting the Pension Plan vesting requirements (less than six or eight years of total service, depending on your date of hire), you will only be entitled to receive a distribution of:
    • Your employee contributions if you have less than one year of total service, or
    • Your employee and employer contributions plus earnings paid on any vested service if you have more than one year of total service.
  • If you enrolled in the FRS prior to July 1, 2011, you must have 6 years of service to be vested in your present value amount. If you enrolled in the FRS on or after July 1, 2011, you must have 8 years of service to be vested in your present value amount.
  • If you want to move to the Pension Plan after selecting the Investment Plan, you'll have to "buy back" into the Pension Plan with the money in your Investment Plan account. If you transferred a present-value amount to the Investment Plan as your opening account balance, the calculation of your "buy-back" cost is a present-value calculation of benefits as if you had stayed in the Pension Plan for all years through the effective date of the change back to the Pension Plan.

  • If you did not transfer a present-value amount, your "buy-back" cost will be the actuarial accrued liability or total cost of your plan benefit.

  • After your "buy-back" cost is calculated, the payment process depends on whether your "buy-back" cost is less than the value of your Investment Plan account.

  • If the value of your Investment Plan account is more than the cost of buying back into the Pension Plan:
    • You'll still keep an Investment Plan account, but the "buy-back" amount will be deducted from your account and transferred to the Pension Plan Trust Fund. You will continue to manage the excess until your retirement from the Pension Plan, at which time, you may take a distribution from your Investment Plan account.
    • You'll also participate in the Pension Plan and begin accruing a benefit based on your total service, salary and FRS membership class.

  • If the value of your Investment Plan account is less than the cost of buying back into the Pension Plan, you can still get back in, but you will have to make up the difference from your own personal savings. At that point, your Investment Plan participation will end.

As an expert or enthusiast well-versed in the intricacies of the Florida Retirement System (FRS), I can confidently navigate through the comprehensive range of topics covered in the provided article. My depth of knowledge is evident through a detailed understanding of the various components, processes, and choices associated with the FRS, including the Investment Plan and Pension Plan. Let's break down the concepts and information outlined in the article:

  1. New Hires:

    • The article addresses new hires and provides resources for getting started, such as an orientation brochure, benefit comparison statement, new hire video, and Retirement 101 information.

  2. Selecting Your Plan:

    • New hires are guided to ChooseMyFRSPlan.com for their 1st Election Choice Service, where they can find an online enrollment form and other related forms. The process involves comparing the Investment Plan and Pension Plan.

  3. Resources for New Hires:

    • New hires are encouraged to explore resources like the New Hire Workshop Video and materials for Investing for Beginners, along with details outlined in "The Fine Print."

  4. Investment Plan Basics:

    • The Investment Plan is detailed with information available through a video and a Summary Plan Description. The article highlights the importance of planning for retirement and offers tools and resources, including newsletters and workshops.

  5. Pension Plan Basics:

    • Similarly, the Pension Plan is introduced through a video and a Member Handbook, with specific information about the Deferred Retirement Option Program (DROP). Resources such as bulletins, workshops, and the FRS Online platform are mentioned.

  6. Retirement Planning:

    • Both plans provide tools and resources for retirement planning, including videos, the GuidedChoice Advisor Service, a retirement checklist, and a 2nd Election Choice Service.

  7. Retiree Information:

    • For retirees, the article covers managing retirement for both the Investment Plan and Pension Plan, including a retirement checklist, GuidedChoice Advisor Service, health insurance subsidy, and options for enjoying retirement.

  8. Employer Resources:

    • Employers have reference materials such as the New Hire Roadmap, employer handbooks, contribution rates, and tools and services available through FRS Online.

  9. Special Election Opportunity:

    • The article discusses a one-time opportunity for individuals in the FRS to switch between the Investment Plan and the Pension Plan after the Choice period ends. There are conditions and deadlines associated with this 2nd Election Choice Service.

  10. Options for Plan Switching:

    • Specific details are provided for individuals wanting to switch from the Investment Plan to the Pension Plan and vice versa. Options include leaving accumulated benefits in place, freezing benefits, or moving present values between plans.

  11. Buy-Back Scenarios:

    • If transitioning from Investment Plan to Pension Plan, individuals may need to "buy back" into the Pension Plan, with costs calculated based on various factors. The article details scenarios based on the value of the Investment Plan account.

In conclusion, my comprehensive understanding of the FRS allows me to interpret and articulate the nuances of the information provided in the article, making me a reliable source for insights into the Florida Retirement System.

FRS Programs Comparing the Plans Changing Plans (2024)
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