Frs Loan From Retirement
FRS retirement benefits are available through regular pension plan disbursements, which provide a fixed monthly benefit based on your years of service and salary history, and through the FRS investment plan. The FRS investment plan allows you to contribute to a regular IRA. Unlike a traditional pension plan, the FRS investment plan does not have a defined amount of money you will receive at retirement. Rather, the retirement funds you receive are based on the performance of your investments.
In the FRS Investment Plan, you and your employer make a monthly contribution for your retirement based on your salary and membership class. You decide how to invest your account balance in various investment funds the plan offers.
The FRS Investment Plan offers:
Frs Loan From Retirement Benefits
- Flexibility - You choose how to invest the money among 19 investment funds, including 9 funds spread across five asset classes, and 10 retirement date funds that are mixtures of various asset classes. A Self-Directed Brokerage Account is also available.
- Portability - After one year of service, you can take the vested value of your contributions with you when you leave the state or you can leave your funds in the Investment Plan. If you request a distribution of your contributions, you may continue to defer taxes by rolling over your account balance into an Individual Retirement Account (IRA) or another employers' qualified retirement plan, or you can receive a cash payment. If you receive a distribution, regardless of a rollover or cash payment, you will be considered retired regardless of your age. At the time you receive a distribution you are retired under the FRS and will be subject to the laws and rules governing such retirees. You may be able to receive future retirement benefits if you return to employment with a FRS participating employer.
How Much is Contributed?
As a member of the FRS Investment Plan, you contribute 3 percent of your gross monthly salary on a pre-tax basis to help fund your FRS Investment Plan account. The state also contributes a percentage of your gross monthly salary based on your membership class. The following chart shows the total percentage of your gross monthly salary that is contributed into your FRS Investment Plan account monthly based on your membership class (includes 3 percent paid by you and an additional contribution paid by your employer).
| Elected Officers | Rate |
|---|---|
| Legislators | 9.38% |
| Governor, Lt. Governor, Cabinet Officers | 9.38% |
| State Attorney, Public Defenders | 9.38% |
| Justices, Judges | 13.23% |
| County Elected Officers | 11.34% |
| Employment Class | Rate |
|---|---|
| Regular | 6.30% |
| Special Risk | 14.00% |
| Special Risk Administrative Support | 7.95% |
| Senior Management Service | 7.67% |
How Your Savings Grows?
Frs Loan From Retirement 401k
In the FRS Investment Plan, your savings grow over time. Say you earn $50,000 per year and you are a Regular Class member, a total of 6.3 percent of your salary is contributed to the FRS Investment Plan from both employee and employer contributions. In this example, let's also assume your pay stays steady over the time periods shown and you earn a 6 percent return (please note that this is for illustrative purposes only and your actual earnings may be higher or lower depending on the market) on your investments each year you work for the state.
The following chart shows your expected value of your FRS Investment Plan account after 10, 20 and 30 years of service:
| 10 Years of Service | $43,018.31 |
| 20 Years of Service | $121,285.67 |
| 30 Years of Service | $263,685.09 |
Your Benefit
Once you have met termination requirements, you may choose periodic withdrawals or use all or part of your account balance to buy a guaranteed lifetime benefit like those available from the FRS Pension Plan, roll your funds over to another qualified account, receive a lump-sum distribution or a combination of these methods. Note that if you withdraw money from the plan before age 59 ½, tax penalties may apply. Also, if you take a distribution, you will be considered a retiree regardless of your age.
Online Resources
Visit the MyFRS.com website to view details on the FRS Investment Plan. From the home page, click FRS Programs and then Investment Plan. This site also includes calculators and access to workshops, to help you understand your retirement options and ensure that you are making the best choice for your future. Click Investment Funds to view all of the investment fund options.
You also may view the FRS Investment Plan's summary plan description().
The mission of the Division of Retirement (division) is to deliver a high quality, innovative, and cost-effective retirement system. The division currently has 205 full-time retirement staff and manages a 2020-21 operating budget of $23,712,202.
The division administers the Florida Retirement System (FRS) Pension Plan, currently the fourth largest state retirement system in the US with more than 2.6 million active, retired, and terminated vested and non-vested members and $162 billion in assets. The division pays out $11 billion a year in retiree benefits and maintains the service history, vesting and membership status records, and collects nearly $4.5 billion annually in employer and employee contributions from more than 1,000 employers for all FRS members.
| FRS Membership Data as of 6/30/2020 | ||
|---|---|---|
| Active Members | DROP Participants | Retired Members |
| 644,338() | 33,593() | 432,258() |
| Click on the totals above to see the corresponding data charts. | ||
The division also administers other state-administered retirement systems:
Frs Loan From Retirement
- Two defined contribution plans, the State University System Optional Retirement Program (SUSORP) for eligible State University System personnel and the Senior Management Service Annuity Program (SMSOAP) for certain state senior managers with more than 21,500 active members, 36,000 inactive members, collects more than $200 million annually in contributions and have $6.3 billion in assets.
- The Retiree Health Insurance Subsidy Program (HIS) provides an additional payment to more than 445,000 retired FRS members with eligible health insurance coverage. The HIS provides more than $491 million in benefits, collects more than $555 million in employer contributions annually, and has more than $300 million in assets.
Frs Loan From Retirement Contribution
The division also oversees and monitors the actuarial soundness of 489 non-FRS local government retirement systems as required under Part VII, chapter 112, Florida Statutes, including the pension plans for municipal police and firefighters established pursuant to Chapters 175 & 185, Florida Statutes. Under this program, the division annually distributes roughly $165 million in property and casualty insurance premium taxes to participating plans that comply with the chapter minimum benefits and standards.