If you're a Florida state employee, you may be entitled to retirement benefits under the Florida Retirement System (FRS). 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. Similar to regular retirement accounts, your contributions are invested into funds you select.
FRS Pension Plan
Multiply your years of service by the percentage value of your career position. As a Florida state employee, you are assigned a percentage value to your position based on its complexity. High-risk positions are assigned higher percentage values. For example, if you work 20 years in a position that has a 2 percent value, multiply 20 by .02. The result is your percentage value equation (.40).
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Total your five highest annual salaries. Use the fiscal year method when you determine your salary year. Florida's fiscal year runs from July 1 through June 30. Divide your total by five to determine your average final compensation.
Multiply your result from the percentage value equation by your average final salary. For example, if your average final salary equals $40,000 and your percentage value equation result is .40, multiply $40,000 by .40. The result is your annual retirement benefit amount ($16,000).
Divide your annual benefit amount by 12 to determine your monthly benefit payment.
FRS Investment Plan
Navigate to the My FRS Calculators web page (see Resources).
Select the calculator tool you want to use. You can use your retirement plan balance information to see how much you withdraw each month and for how long; find out how much money you need in your account to start retirement; and compare how investing into a Roth IRA differs from regular IRA investing.
Input the financial information that your selected calculator requires. Use your result to make investment or withdrawal decisions. If you have questions regarding your retirement planning, contact a My FRS financial planner for guidance (see Resources). You can meet with the planner by phone, online or in person.