Spring Retirement Meeting
APRIL, 2015
AHHHH ~ Retirement
Normal Retirement – Pension Plan
For employee’s hired prior to July 1, 2011, Normal
Retirement is:

Vested (at least 6 years of creditable service in the
FRS)

Age 62 OR 30 years of creditable service, whichever
comes first
Normal Retirement – Pension Plan
For employee’s hired after July 1, 2011, Normal
Retirement is:

Vested (at least 8 years of creditable service in the
FRS)

Age 65 OR 33 years of creditable service, whichever
comes first
Planning Ahead: I plan on retiring …how
do I prepare?
What do I need to do?
 Schedule
an appointment with the
Retirement Coordinator
 Complete
 Sign
Application for Service Retirement
forms in front of a notary
 Submit
forms to the Division of Retirement
When should I begin?

FRS prefers to receive Application for Service Retirement 3
months prior to termination date. This allows the division time
to:
 Complete
 Add

all the necessary calculations
your name to the retired payroll
FRS will not accept applications more than 6 months in advance
of your effective retirement date.
What will I need?

When you apply for retirement, you must furnish
proof of your age.

The division must receive the required proof of
age before you can begin receiving benefits.

If you choose benefit Option 3 or 4, you must also
furnish proof of age for your joint annuitant.
What proof of age will be accepted?
The division will accept a readable copy of one of the following
documents:

Birth certificate

Delayed birth certificate

Census report more than 30 years old

Life insurance policy more than 30 years old

Documentation from Social Security Administration stating the
date of birth has been established for payment of benefits to
you or your joint annuitant

Certificate of naturalization
Pension Benefit Options
What are the four Pension benefit options?
Option 1

The maximum monthly benefit payable to you for your lifetime.

Upon your death, the monthly benefit will stop and your beneficiary
will receive only a refund of any contributions you paid which are in
excess of the amount you received in benefits.

This option does not provide a continuing benefit to your beneficiary.

If you are married and select Option 1, your spouse must
acknowledge your selection.
Option 2

Monthly benefit that is less than the Option 1 benefit, and
the benefit is payable to you for your lifetime.

In the event you die within ten years after your
retirement date, including any period of DROP
participation, the same monthly benefit will be paid to
your designed beneficiary for the balance of the 10-year
period. No further benefits are then payable.

If you are married and select Option 2, your spouse must
acknowledge your selection.
Option 3

A reduced monthly benefit payable for your lifetime.

Upon your death, your joint annuitant, if living, will
receive a lifetime monthly benefit payment in the same
amount as you were receiving.

No further benefits are payable after both you and your
joint annuitant are deceased.
Option 4

An adjusted monthly benefit payable to you while both you and your
joint annuitant are living.

Upon the death of either you or your joint annuitant, the monthly
benefit payable to the survivor is reduced to two-thirds of the
monthly benefit received when both are living.

No further benefits are payable after both you and your joint
annuitant are deceased.
DROP
Deferred Retirement Option Program
What is the Deferred Retirement Option
Program (DROP)?



The DROP is a Pension Plan program under which you
may retire and have your monthly retirement benefits
remain in the Florida Retirement System (FRS) Trust
Fund instead of being paid directly to you or
deposited in your bank.
Your benefits will earn interest for you, tax deferred,
for as long as you participate in the DROP.
In the meantime you continue to work for your FRS
employer for a specified and limited period up to the
date you pre-selected to stop participation in DROP.
What is the Deferred Retirement Option
Program (DROP)?

When the DROP period ends, you must terminate
employment.

At that time, you will receive payment of the
accumulated DROP benefits, and begin receiving your
FRS monthly retirement benefit (in the same amount
as determined at retirement, plus annual cost-of-
living increases).
When can I begin DROP?

You can begin the DROP when you are vested and have reached your normal
retirement date (if you have FRS service prior to July 1, 2011), as follows:
 Your
normal retirement date is either when you are vested (6
years) and reach age 62, or when you complete 30 years of
service, whichever comes first.
 If
you become vested after age 62, your normal retirement date
is the month following the month you reach 6 years of service.
DROP Eligibility
You must elect DROP participation within 12 months after you first reach your
normal retirement date unless you are eligible to defer as follows:

If you have FRS service prior to July 1, 2011 you may…
 …defer
DROP enrollment if you complete 30 years of service
before age 57, you may defer DROP and elect to begin
participation at any time between completing 30 years and
reaching age 57.
Can I defer starting DROP?
You are eligible to defer DROP enrollment if
you are:

Members in Instructional positions defined by
s. 1012.01(2)(a)-(d), F.S., may begin DROP at
any time after reaching normal retirement.
What if I want to switch
plans?
2nd Election
One-Time Opportunity to Switch FRS
Retirement Plans

After making your initial Florida Retirement System (FRS) retirement plan
selection, you can change plans one time during your FRS working career.
This plan change – called your “2nd Election” – IS NOT FOR EVERYONE, but it
could be right for you.

If you are considering changing from the Pension Plan to the Investment Plan,
you should review the Fund Profiles, the Investment Fund Summary, and the
Annual Fee Disclosure Statement posted in the “Investment Funds” section at
MyFRS.com before selecting any investment funds or making an election.
One-Time Opportunity to Switch FRS
Retirement Plans

Before using your 2nd Election, get unbiased help from the FRS. Review your plan options carefully. Once
you make a 2nd Election, that decision is final unless you timely notify the MyFRS Financial Guidance Line
that you wish to cancel your election. Once your 2nd Election is finalized, you must remain in your
chosen plan until your FRS-covered employment ends and you retire. The FRS offers two ways to get
free help:

Call the toll-free MyFRS Financial Guidance Line at 1-866-446-9377,
Option 1
(or TRS 711).
Financial planners will provide personalized, unbiased information based on your individual situation. Get
solid financial guidance from someone who is not trying to sell you investment or insurance products.

Log in at MyFRS.com and select the 2nd Election Choice Service to see your projected Retirement benefits
under both plans. You can change the information to better match your life circumstances.
If you are in the FRS Pension Plan – you can
switch to the FRS Investment Plan
What this means to you:

No cost to you!

The present value of your Pension Plan benefit
(called an accumulated benefit obligation, or
ABO) will become your opening Investment
Plan account balance.

You will be fully vested in the money you
transfer from the Pension Plan to the
Investment Plan after you have 6 years of
service credit under the FRS.

You will be vested in new contributions if you
have at least 1 year of FRS-covered
employment.

If, however, you terminate employment with
less than 6 years of service credit, you
could forfeit the amount transferred from
the Pension Plan!
If you are in the FRS Investment Plan – you can
switch to the FRS Pension Plan
What this means to you:

Your Investment Plan service will count
toward the Pension Plan’s 6-year vesting
requirement

You must “buy in” to the Pension Plan using
the money in your Investment Plan account.

The FRS will calculate your buy-in cost…
If you are in the FRS Investment Plan – you can
switch to the FRS Pension Plan
After your buy-in cost is
calculated…


If there isn’t enough money in your Investment

And have extra funds left in your Investment
Plan account to cover the buy-in cost, you
Plan account, this surplus will remain in your
must make up the difference using your
Investment Plan account and you will continue
personal funds.
to manage the funds as you did before.
You may be permitted to roll over funds from
another eligible retirement plan to help pay
the difference.

If you buy in to the pension plan…
Note: The buy-in cost increases monthly.

However, your Investment Plan money will not
be available for distribution until you retire and
begin receiving your Pension Plan benefit.
CAUTION

Some outside investment agents may try to
persuade you to use your 2nd Election. Make an
informed decision by calling the MyFRS
Financial Guidance Line and speaking with an
unbiased financial planner to see whether
making a 2nd Election is in your best interests.
Reemployment
Reemployment after retirement or
at the conclusion of DROP
participation?
After you retire under the FRS, you can work for:

Any private employer

For any public employer not participating in the
FRS

For any employer in another state, without
affecting your FRS benefits
Reemployment limitations with FRSparticipating employers
There are, however, certain termination requirements and
reemployment limitations that affect your retirement
benefit if you are employed with FRS-participating
employers during the first 12 calendar months after your
effective retirement date without Deferred Retirement
Option Program (DROP) participation or after your DROP
termination date.
The termination requirements and
reemployment limitations with FRSparticipating employers are:

If you return to work during the first six calendar months of
your retirement or after your DROP termination date, you are
not retired. Your retirement application is voided and all
retirement benefits, including any funds accumulated during
your DROP participation, must be repaid, by you, to the FRS
Trust Fund. This restriction applies even if the particular
position you hold is not covered by the FRS (such as a
substitute).
The termination requirements and
reemployment limitations with FRSparticipating employers are:

You may not receive both a salary and a retirement benefit in
the same month during the seventh through twelfth calendar
months of your retirement or after your DROP termination
date. There are no exceptions to this reemployment limitation
during this period. This restriction applies even if the particular
position you hold is not covered by the FRS. You must inform us
if you work for an FRS employer during the reemployment
limitation period.
The termination requirements and
reemployment limitations with FRSparticipating employers are:

There are no limits on working for an FRS employer
after you have been retired for 12 calendar months.

If you are reemployed with a participating employer,
you will be required to sign a statement that your
reemployment does not violate these provisions.
Note:
Employment with an FRS employer
includes any full-time, part-time,
temporary, other personal services
(OPS), contractual services or noncontractual services with your
previous employer or any other FRS
employer.
But can I volunteer?

According to the Department of Labor, an individual who performs hours of service for a
public agency for civic, charitable, or humanitarian reasons, without promise, expectation or
receipt of compensation for services rendered, is considered to be a volunteer
A few examples of non-paid services recognized as volunteer services









Booster Club activities
Coaching athletics
Courtesy Faculty positions with universities
Guardian Ad Litem (for children and adults seniors)
Library/Media/ Cafeteria assistance
School guard
School campus clean-up
Trip chaperone
Tutor, mentor and literacy programs in K-12 schools
Questions to assist in determining
whether a retiree is a true volunteer.
Expected answer: YES
Expected answer: NO
Is the activity less than a full-time
occupation?
Is the work otherwise performed by
other employees?
Are the services of the kind typically
associated with volunteer work?
Have regular employees been displaced
or have vacant positions remained open
to accommodate the volunteer?
Does the worker receive (or expect)
any benefit from the entity to which it
is providing services?
Retirement…..
Where EVERY day is a Saturday!
Contact Information:
Sheila Bennett, Retirement
Coordinator
Bennetts@lake.k12.fl.us
(352) 253-6535
Retirement and Payroll
.
It's nice to get out of the rat race, but you have to
learn to get along with less cheese.
Chris Carmickle
Payroll Manager
Lake County Schools
Who pays you?

Your pension is paid by the Florida Retirement System.

Lake County Schools Payroll has no direct involvement with the calculation of
your monthly pension check, or your investment funds distribution.
Terminal / Sick Leave
information as of 10/01/2012

Terminal Pay refers to the payment of Sick Leave

Has value only if you retire as your reason for separation from service.

“Normal Retirement” – retirement with either full or reduced benefits as provided
by the Florida Statutes, but shall not mean disability retirement.



6 or 8 years of retirement creditable service required
When you enter DROP you retire

Your leave value is calculated at entry to DROP

Your leave value will not increase
Any employee entitled to accrued sick pay benefits shall have been under
appointment to render services for the period immediately preceding termination,
and shall not be under suspension from duty or have any charges pending which
could result in dismissal from employment.
Terminal / Sick Leave
information as of 10/01/2012
The value of terminal leave is determined by
1.
2.
Position

Administrative/Managerial employees are credited at the rate Sick Leave was earned back to
2004

Other employees are paid at the current rate of pay.
Length of service in a qualified position with Lake County Schools - not in an FRS
position

35% 0 – 3 years

40% 3 – 6 years

45% 6 – 9 years

50% 10 – 12 years

100% > 12 years
Terminal / Sick Leave
information as of 10/01/2012
DROP

Your rate of pay and hours are frozen the last regular work day before you
enter DROP (not summer work)

Any sick leave you earn after that date will not be paid at separation.

You will have options for your payment of sick leave while you are in DROP.
Read your options and ask questions before you make a selection. Your
selection affects

Eligibility for Sick Bank

Ability to use sick leave days
Annual / Vacation Leave
information as of 10/01/2012

Annual Leave refers to Vacation Leave

Any employee who voluntarily separates from employment or transfers from a
twelve (12) month position to less than a twelve (12) month position in the District
shall receive pay for accrued vacation leave at the time of transfer or voluntary
separation provided he / she has been employed for twelve (12) continuous
months.

Payment shall be made at the rate of pay at the time of voluntary separation from
employment, retirement, transfer or death.

The maximum number of vacation days paid during any one employment period
shall be forty-eight (48).

The employee will receive a lump-sum payment of accrued vacation leave or may
request to extend his/her employment status through the last day of accrued
vacation leave.
Annual / Vacation Leave
information as of 10/01/2012
DROP

An employee’s vacation leave balance may be paid at entry to DROP and
again at the exit from DROP.

The total days paid may not exceed forty-eight (48).

Payment shall be made at the rate of pay at the time of voluntary separation
from employment, retirement, transfer or death. Therefore Vacation paid at
entry to DROP and at exit from DROP may be at different rates of pay.

Vacation paid at entry to DROP is credited toward your AFR calculation.
How are Leave Payments distributed?

The lump sum payment of accrued sick (or
vacation leave when applicable) will be disbursed
to the District’s 401(a) salary deferral plan (The
BENCOR Special Pay Plan)
•
Mandatory, not optional
The what? The BENCOR Special Pay
Plan

The BENCOR 401(a) Special Pay Plan (SPP) is a tax-qualified retirement plan
for unused sick pay and vacation pay.

The BENCOR SPP is a powerful retirement tool offered by your employer. If
you are entitled to sick and vacation pay the BENCOR SPP will help ensure you
never pay Social Security and Medicare taxes on that money. It will also give
you the ability to defer payment of the related income taxes until you receive
distributions at retirement.

Note: Income taxes are payable upon withdrawal. Federal restrictions and a
10% tax penalty may apply to a withdrawal after termination of employment
if you are not at least age 55 by year end.
BENCOR: Don Anders, Representative
Social Security
Administration
Rebecca Price
Becky Frost, Benefits Manager
Brown & Brown Insurance
Valery Insurance Agency
Doug Valery