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Eligibility
You are
automatically enrolled in the Florida Retirement System (FRS) if you
are working in a full-time position or working half-time or greater
in a regularly established position. You are not eligible for
retirement if you are working half-time or less, working in a
temporary position or working as a substitute. The School Board of
Alachua County pays your retirement benefit for you.
Retirement Plans
There are two (2)
retirement plans for employees to choose from:
The FRS
Pension Plan - You are eligible to receive a benefit after you
are "vested." Vested means that you have completed six (6) years
of creditable service. The monthly benefit you receive when you
retire is then based on your years of creditable service, age,
the average of your highest five years of salary and the option
you choose. Normal retirement age is 62.
The FRS
Investment Plan - The new Investment Plan allows you to invest
the employer contribution in the investment of your choice. The
benefit then would not be fixed, but rather depending on how
well the investments perform. You are "vested" after one year
of employment under this plan.
Visit the website at
www.frs.state.fl.us
for detailed information on retirement plans.
Types of
Retirement
Normal
Retirement
Normal retirement requirements are as follows:
Vested with at least 6 years of creditable service and
age 62
30 years of creditable service
regardless of age
Early
Retirement
Must have at least 25 years of service (the last five
years of service with Alachua County Public Schools) and 55 years of
age
If you are vested but not yet eligible for normal retirement you may
elect Early Retirement. Early Retirement with SBAC makes up the
penalty you would receive with the state for retiring early, which
is 5% for every year under age 62.
DROP -
Deferred Retirement Option
Program
WHAT IS DROP?
The Deferred Retirement Option Program (DROP) is a program which
began July 1, 1998, that allows you to retire accumulating your
retirement benefits, without terminating employment, for up to 60
months from the date you first reach your normal retirement.
While participating in DROP, your monthly retirement benefits
accumulate in the FRS Trust Fund, earning tax-deferred interest,
while you continue to work without earning any additional service
credit for retirement. When your DROP participation ends, you
must terminate all employment with all FRS employers. At that
time, you will receive payment of your accumulated DROP benefits,
and begin receiving your monthly retirement benefit in the same
amount as determined at retirement, plus annual cost-of-living
increases. For many, DROP is the "best of both worlds,"
providing both a guaranteed lifetime benefit and a lump sum to be
invested by the member after DROP ends.
WHEN CAN I BEGIN DROP?
You can begin DROP in the month you reach your normal retirement
date based upon your age, or the month following the month you reach
your normal retirement date based upon your years of service.
For example, if you are vested and reach age 62 on July 22, your
normal retirement date is July 1. However, if your reach 30
years of service in December, your normal retirement date is January
1.
If
you reach your normal retirement date based on your years of service
before age 57, you may elect to defer DROP participation until age
57. For example, if you reach 30 years of service at age 53,
you may defer to join DROP until age 57 and still participate for
the 60 months.
HOW MUCH INTEREST WILL MY DROP
ACCOUNT EARN?
DROP accounts earn interest compounded monthly at an effective
annual rate of 6.5%. Your retirement benefits paid into DROP are
also increased by the 3% annual cost-of-living adjustment (COLA)
each July 1. (If you are in DROP for less than a full year on July
1, your first COLA will be a prorated percentage based upon the
number of months you were in DROP before July 1.) When you terminate
employment, the proceeds of your DROP account will be distributed to
you in one of three ways. You may take a lump sum payment, a direct
rollover, or a combined partial lump sum payment and rollover.
DROP accounts earn interest compounded monthly at an effective
annual rate of 6.5% plus a 3% cost-of-living adjustment (COLA) ever
year. No interest is earned on benefits on deposit for less
than one month or after one month in which you terminate employment.
WHAT ABOUT MY SICK AND VACATION
TIME?
If
your sick and/or vacation time are valued over $1000.00, the funds
will be transferred into a tax-sheltered account with a company
called BENCOR. This is a school mandated program, and you are
able to withdraw the money when you exit DROP. Vacation time
is transferred immediately. Sick time is transferred in
increments beginning after one year of DROP participation is
completed and thereafter until the end of DROP. Sick/Vacation
time earns 4.05% interest yearly (subject to change).
WHAT ABOUT MY HEALTH AND LIFE
INSURANCE?
You are eligible to keep your health and life insurance through
payroll deduction from your retirement check. You will receive
$5.00 per year of service (up to 30 years of service) per month as a
subsidiary towards your health insurance from the Division of
Retirement. (Example: If you have 30 years of service you
would receive 30 x $5.00 = $150.00 towards insurance per month).
Maximum health insurance subsidy is $150.00.
AM I GUARANTEED EMPLOYMENT IF I
AM ENROLLED IN DROP?
No, your employment status is not changed by your DROP
participation. You may quit your job or your employer may lay
you off or terminate you in the same manner before your
participation in DROP began.
WHAT HAPPENS WHEN MY DROP
PARTICIPATION ENDS?
You and your employer(s) must verify your termination of all
employment with FRS employers. Upon verification, you will
begin receiving your monthly FRS retirement benefit and distribution
of your DROP account. Your DROP account does not earn interest
after you DROP participation ends. When you terminate
employment, the proceeds of your DROP account will be distributed to
you in one of three ways. You may take a lump sum payment, a direct
rollover, or a combined partial lump sum payment and rollover.
Within 60 days after DROP ends, your DROP assets will be distributed
in the manner you specify. If you do not specify a
distribution method within that 60 day period, you will be issued a
lump sum payment, less the withheld taxes. |
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