Retirement

Retirement

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

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.

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.

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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.

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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 (888) 258-3422.

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Contact Information

Lannie Santiago, HR Administrator III
7770 West Oakland Park Blvd.
Sunrise, Florida 33351
Telephone: (754) 321-3100
Fax: (754) 321-3280
Email: lannie.santiago@browardschools.com

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