Workshop Presentations

Transcription

1 Division of Retirement Employer Training Workshop Chad Poppell, Secretary Workshop Presentations 1. FRS Online 2. Enrollment Section 3. Contributions Section 4. Bureau of Retirement Calculations 5. Disability Section 6. DROP Termination and Refund Payment Section 7. Survivor Benefits Section 2 1

2 FRS ONLINE Division of Retirement Chad Poppell, Secretary WHAT IS FRS ONLINE? FRS Online is the secure web environment where employers: Update agency users, employer contacts, authorized signers, and address information Enter termination dates, leaves of absences and death notices Access Online Forms Submit monthly retirement report 4 2

3 WHAT IS FRS ONLINE? FRS Online is the secure web environment where employers view: Active Members Fatal and non fatal errors DROP Participants SMSC Positions Distribution Information DROP Termination Memos Plan Election Information Retirees Employer invoices Member account information Missing list No Beneficiary Designation list 5 WHO AT THE AGENCY HAS ACCESS TO FRS ONLINE? The agency s retirement coordinator is granted retirement coordinator access to FRS Online by the Division of Retirement. The agency s other users are granted access to FRS Online by the agency s retirement coordinator based on agency needs. 6 3

4 RETIREMENT COORDINATOR RESPONSIBILITIES The main responsibilities of the retirement coordinator for FRS Online: Maintain Agency Contact Information Maintain Agency Authorized Signers & Authorized Users Read and share communications received from the Division of Retirement If you are the retirement coordinator and don t have retirement coordinator access, forgot your user name and/or password, or are locked out of your account, contact the division at or Option 2. 7 RETIREMENT COORDINATOR ACCESS Retirement coordinators can verify if their user name has been assigned RETIREMENT COORDINATOR access on the Agency User page of the Agency Info module. 8 4

5 NON RETIREMENT COORDINATOR USER ACCESS Contact your agency s retirement coordinator if: Your position requires access to FRS Online You have forgotten your user name and/or password Your account access is locked You would like more access to FRS Online

6 11 LOG IN PAGE 12 6

7 LOG IN PAGE ERROR MESSAGE 13 THE NAVIGATION BAR TWO TYPES OF MODULES My Account Specific to user Employer Services Modules shown are those your retirement coordinator granted you access to 14 7

8 MY ACCOUNT MODULES Profile Settings Update your user profile. Message Center Receive messages from the division. Deleted Messages Retrieve your recently deleted messages. 15 EMPLOYER SERVICES MODULES This is a list of Employer Services modules. Users only see the modules they have been assigned access to. Retirement coordinators assign module access to a user based on agency needs. 16 8

9 AGENCY INFO Through the Agency Info module, retirement coordinators can: Assign agency users and provide agency users with appropriate module access based upon agency needs Keep their agency s contact information and address current Keep their agency s authorized signers current for retirement paperwork 17 AGENCY INFO Retirement coordinator assigns agency users and provides appropriate access Maintain agency contact information Update division records Determine who at agency will receive certain correspondence from the division View your agency s Senior Management positions and delivery preference for invoices 18 9

10 AGENCY INFO/AUTHORIZED SIGNERS Authorized Signers Retirement coordinator maintains the list of authorized agency signers for retirement paperwork for the FRS Pension and Investment Plans. 19 FRS ONLINE Agency retirement coordinators or any other agency personnel should never establish an FRS Online profile for their employees or use the employee s account to create estimates or create/change retiree services. Employers have access to their active and retired members information without logging in as the employee. Do not become the focus of a Florida Department of Law Enforcement fraud investigation. If there is unauthorized access to a member s account, and the employer established or made changes to the member s account, that individual and the employer will be part of the investigation

11 FRS ONLINE How to create a strong password Don't use passwords that are based on personal information that can be easily accessed or guessed. Don't use words that can be found in any dictionary of any language. Develop a mnemonic for remembering complex passwords. Use both lower and upper case letters. Use a combination of letters, numbers and special characters. Use passphrases (a string of characters longer than a usual password) when you can. Use different passwords on different systems. 21 FRS ONLINE Retirement coordinators and agency users will be locked out if they submit the incorrect user name/password combination three times. Retirement coordinators should contact the division at or Option 2 if they are locked out of their account or need their password reset. Other agency users should contact their retirement coordinator for assistance if they are locked out of their account or need their password reset

12 Questions? 23 Enrollment Section Bureau of Enrollment and Contributions Division of Retirement Chad Poppell, Secretary 12

13 Florida Retirement System The Florida Retirement System (FRS) was created on December 1, 1970, by Chapter 121, Florida Statutes, to provide a retirement and survivor benefit program for participating public employees. Membership in the FRS is mandatory for all employees who begin employment with an FRS agency on or after December 1, 1970, in a regularly established position. All members of the FRS are covered by social security under an agreement by the State of Florida with the U.S. Social Security Administration. Florida Retirement System The Pension Plan is a defined benefit plan and the Investment Plan is a defined contribution plan. Except for certain university members, each new member will be given the option to participate in either plan. Members are given one additional election to transfer between plans at a later date in their career. 13

14 Regularly Established Position State Agency or State University Authorized position paid from salaries account or appropriation Local Agency position that will be in existence beyond six consecutive months. Membership is determined by the length of the position More than six consecutive calendar months Part of a month is considered an entire month Temporary Positions State Agency or State University An employment position that is compensated from an Other Personal Services (OPS) account. Local Agency An employment position which will not exist beyond six months; or a position that is an exception to the six month rule. 14

15 Temporary Positions in Local Agencies Temporary positions that are exceptions to the six month rule: Student Positions Work Study Employees Temporary Instructional Personnel Substitute Teachers Persons On Call CETA and JTPA participants. Non Salaried Elected Officials Temporary Non Instructional Community College Employees Temporary Emergency Positions Foreign Exchange Teachers Independent Contractor or Employee If the employer has the right to exert control, then an employee employer relationship exists. The determination of the employment classification of a person as an employee or an independent contractor is solely within the jurisdiction of the division. For a determination, contact the Division of Retirement. 15

16 Membership Classes Regular Class Special Risk Class Special Risk Administrative Support Class Senior Management Service Class Elected Officers Class Regular Class For general employees who are required to participate in the FRS and are not eligible to participate in one of the other retirement classes Enroll in FRS through your retirement report 16

17 Special Risk Class The Special Risk Class is limited to certain positions: Law Enforcement Officers Firefighters Correctional Officers Emergency Medical Technicians and Paramedics Community Based Correctional Probation Officers Specified State Level Professional Health Care Employees Certain Forensic Workers Special Risk Administrative Class Former Special Risk Class members who are employed in or reassigned to a position that provides administrative support for a special risk employer. Retirement credit at the same percentage values that are provided for members of the Regular Class, rather than the values granted to members of the Special Risk Class. Service counts towards the special risk retirement date. 17

18 SMSC State Agencies Certain positions are compulsory positions within the Senior Management Service Class (SMSC): Legislative Managers Auditor General Certain managerial positions with the State Board of Administration Compensation Claims Judges Certain managerial positions with Department of Military Affairs SMSC Local Agencies Compulsory Community College Presidents Appointed District School Superintendents County Managers City Managers Metropolitan Planning Organization Executive or Staff Director 18

19 SMSC Local Agencies Designated Designate up to ten qualified positions to be included in the SMSC and one additional position for each 100 regularly established positions. A non elective managerial or policymaking position. Is not subject to a continuing contract and serves at the pleasure of the employer without civil service protection. Heads an organizational unit or has responsibility to effect or recommend personnel, budget, expenditure, or policy decisions in the areas of responsibility. EOC State and County Officers Governor Lieutenant Governor Cabinet Officer Legislator Supreme Court Justice District Court of Appeal Judge Circuit Judge County Court Judge State Attorney Public Defender Sheriff Tax Collector Property Appraiser Supervisor of Elections Clerk of the Circuit Court County Commissioner School Board Member Elected Superintendent Countywide Jurisdiction 19

20 EOC Municipal and Special Districts Agency must have joined for elected officers covered group. Agency must pass an additional ordinance allowing Elected Officials to participate in the Elected Officers Class. Mayor Vice Mayor Councilmember Questions? 40 20

21 Contributions Section Bureau of Enrollment and Contributions Division of Retirement Chad Poppell, Secretary Retirement File and Contribution Submission Three components of monthly submission: 1) Data File 2) Contributions Summary 3) Contributions All due by the 5 th business day of the month 1% delinquent assessment if submission is late or cannot be balanced by due date Only one file can be submitted per month Enrollment of new employees via the file Demographic changes via the file 21

22 Retirement Eligible Compensation Regular Salary Payments Supplemental Pay for Employees on Active Military Service Annual Leave/Sick Leave Used Lump Sum Annual Leave Payments Up to 500 hours Lump Sum Compensatory Time Salary Incentive Pay for Law Enforcement and Correctional Officers Certain Educational Incentive Pay Workers Compensation Salary Additives Must meet ALL of the following conditions: 1. Made pursuant to a formal written policy that applies to all eligible employees equally; 2. Payments begin no later than the 11 th year of employment; 3. Once begun, payments continue as long as the employee continues employment; 4. Made at least annually. Salary Additives 22

23 Work Periods SERVICE CREDIT: 09 = School Board, charter school community college, or state university employees with a 9 month contract 10 = School Board, charter school community college, or state university employees with a 10 month contract 11 = School Board, charter school community college, or state university employees with an 11 month contract 12 = School Board, charter school community college, or state university employees with a 12 month contract and general employees with all other agencies OTHER PAYMENTS: 21 = Lump Sum Annual Leave 23 = Lump Sum Overtime, Holiday or Compensatory Time 88 = Workers Compensation 38 = Voluntary Employee Contributions for SUSORP and SMSOAP only* * SUSORP State University System Optional Retirement Program SMSOAP Senior Management Optional Annuity Program (for state) Excluded Compensation Bonuses Expense reimbursement and/or Fringe Benefits Lump Sum annual leave in excess of 500 hours Lump sum sick leave Third party payments Stipends for workshops or inservice programs Lump Sum compensatory leave if not paid within 11 months of when the service was performed 23

24 Base Salary or Bonus To determine if a payment should be reported, several things should be addressed: 1. Is the payment included in the hourly rate of pay and considered part of the employee s base rate of pay? 2. Is the payment included in the calculation of overtime? 3. Is the payment included in the buy out of unused annual and/or sick leave? 4. Are subsequent raises based on the payment as part of the base salary? Salary This Month Normal salary payments should be reported when paid not when earned. For members entering DROP, the salary earned prior to the member s DROP effective date should be split out and reported under the pre DROP plan, as should AL payouts made at that time. This is the only time two different plans may be reported the same month. DROP Splits/Payroll Errors Module Salary payments for prior months or settlements should not be reported as current month earnings. 24

25 Types of Adjustments Audit Reinstatements Prior Period code E code R code A Credits & Workers Compensation Workers Compensation 1. The employee is retained in full pay status during the period of WC. Salary and retirement contributions are reported in the normal way. No further adjustments are necessary. 2. Partial salary and WC payments are made to the employee. The partial salary and retirement contributions are reported in the normal way. The first retirement report after the employee becomes eligible to receive retirement credit, the employer must report the remaining salary the employee would have received had they not received WC payments. 3. WC payments are made to the employee by an insurance company or from a non salary account of the employer. Because the employee received no salary payments, the employee was not reported for retirement during the WC period. The first retirement report after the employee becomes eligible to receive retirement credit, the employer must report the WC leave period for retirement purposes. 25

26 Workers Compensation Reporting Use the employee s monthly rate of compensation before receiving WC payments. Use work period code 88 for WC payments received on or after July 1, 1990 Use work period code 77 for WC payments received before July 1, Report compensation and retirement contributions only for the period that the employee received WC payments for temporary total or temporary partial disability and remained in an employee/employer relationship. The employer pays both the employee and employer contributions and reports the total in the employer contribution field. Workers Compensation Reporting After the member returns to work for a full calendar month; or Retires on disability No WC credit after Maximum Medical Improvement is reached Adjustments reported up to MMI date Agencies failing to report retirement contributions properly and timely will be charged a delinquent fee equal to 1 percent of the contributions due for each calendar month or part thereof that the contributions are late. 26

27 Workers Compensation Example Assume employee s salary is $5000 per month Reported 33 1/3: Salary EECON ERCON 7/2016 HA 12 $ $50.00 $ /2016 HA 12 $ $50.00 $ /2016 HA 12 $ $50.00 $ /2016 HA 12 $ $50.00 $ /2016 HA 12 $ $50.00 $ WP 88 Adjustment 66 2/3: Salary EECON ERCON* 7/2016 HA 88 $ $ /2016 HA 88 $ $ /2016 HA 88 $ $ /2016 HA 88 $ $ /2016 HA 88 $ $ *Employer pays both employee and employer contributions. Other Noteworthy Payroll Details Date of Hire Annualized Salary Important for the creation of choice information for new members Date of Termination Must be present for retirement distributions Limit Monitoring Address addresses are used to communicate with our members. 27

28 Accurate Payroll Reporting Our Goal is to have the initial data reported for members accurate. Self service options for members online Member Annual Statements Retirement process is easier for both agency and member Reduces chance of delinquency fees and loss of earnings assessed to the agency Accurate Payroll Reporting Error notification sent via to Retirement Coordinators Fatal Errors are deleted from the FRS database Contributions returned (or billed) via invoice Corrected entries for Fatal Errors should be submitted on the next month s retirement report Corrections submitted later than the following month are assessed 1% delinquent fee Agency responses on Non Fatal Errors should be sent to contributions@dms.myflorida.com 28

29 Accurate Payroll Reporting Payroll Errors Module Non Investment Plan DROP Split errors corrected in real time PLO959 Error based on your agency s pay cycle Wizard guided entry of data for the effective month of DROP Accurate Payroll Reporting Payroll Errors Module Investment Plan Time critical Agencies provide the division information to update the errors. 29

30 Questions? 59 Bureau of Retirement Calculations Division of Retirement Chad Poppell, Secretary 30

31 Responsibilities of Retirement Calculations Process active Pension Plan member beneficiary designations Generate Member Annual Statements (MAS) Calculate the cost to purchase other types of creditable service Monitor potential forfeitures Audit member accounts and provide benefit estimates Process service retirement and DROP retirement applications Monitor reemployment violations after retirement 61 Active Member Beneficiary Designations All active Pension Plan members should designate a beneficiary and keep designation current: Through their FRS Online Account; or Submit Form BEN

32 Agency FRS Online No Beneficiary Designation List Pension Plan 63 Member Annual Statements (MAS) Generated in member s birth month Accessible By member from FRS Online By agency under the Member Account Info module of Employer FRS Online Notification of MAS sent to employee s address 64 32

33 Agency FRS Online Missing List 65 Eligibility Other Types of Creditable Service Military Leaves of Absence Leaves covered employment within 60 days of entering military Applies for employment with same employer within 90 days of honorable discharge Returns to covered employment with same employer Employer Responsibility Submit DD 214 and DPR 100M Division will calculate the cost Employer payment mandatory Employee payment optional 66 33

34 Other Types of Creditable Service Refunded Service FR 09 Leaves of Absence (Form FR 28) Active Duty Wartime Military Service provision (DD 214) In State/Out of State service provisions (Form FR 30) Military service as Out of State service (DD 214) Refer to Chapter 7 of Employer Handbook 67 Potential Forfeiture of Benefits Notify the division if a member commits a crime as specified in Section (5) or , Florida Statues, prior to retirement or while in DROP. Refer to Chapter 12 of the Employer Handbook 68 34

35 Benefit Estimates/Audits Members should request an estimate from the division if within five years of service retirement or DROP entry. By phone: Toll free ; or Direct at Submit Form FR 09 Via Audit/Estimate link on Members page of 69 Normal Retirement Date Members Enrolled before July 1, 2011 (except Special Risk) Vested and age years of service Members Enrolled after July 1, 2011 (except Special Risk) Vested and age years of service 70 35

36 Normal Retirement Date Special Risk Members Enrolled before July 1, 2011 Vested and age years of Special Risk Class service Special Risk Members Enrolled after July 1, 2011 Vested and age years of Special Risk service 71 Normal Retirement DROP Members eligible to enter DROP at Normal Retirement 60 month DROP participation period 12 month election window Members eligible to defer their 60 month DROP participation period 72 36

37 Retirement Applications Service Retirement Application FR 11 Application for Service Retirement DROP Retirement Application DP 11 Application for Service Retirement and DROP DP ELE Notice of Election to Participate in the DROP and Resignation of Employment 73 Retirement Applications Additional Forms required for Retirement FRS 11o Option Selection Form SA 1 Spousal Acknowledgement Form Birth Date Verification member and joint annuitant (Form BVR 1) Recorded Marriage Certificate (Option 3 or 4 only) 74 37

38 Final Salary Certification (FC 1 Form) Service Retirement certify the last four months of salary earned up through the date of termination on the FC 1. DROP Retirement certify the last four months of salary earned through the day before DROP participation begins on the FC 1. Fax FC 1 to the division by the no later than the fifth of the month following termination or DROP begin date

39 FC 1 Service Retirement vs DROP Bi weekly payroll example Service Retirement Effective 08/01/2016 DROP Retirement Effective 08/01/ Reemployment of a Retiree Termination Requirement First six calendar months Reemployment Limitation Period Seventh through the 12th calendar months Form FR 23 (Notification of Reemployment for Suspension of Retirement Benefits) to suspend benefits Retiree and the employing agency jointly and severally liable for repayment To Reactivate Retirement Benefits Form FR 23a 78 39

40 Employer Responsibility 79 Employer Responsibility An example of Distribution Info results that indicate the prospective employee is a retiree. XXX-XX-1111 XXX-XX-1111 Smith, Mary 80 40

41 Employer Responsibility Another example of Distribution Info results indicating prospective employee is a retiree. XXX-XX-1111 XXX-XX-1111 Smith, Mary 81 Renewed Membership Retirees of any state administered retirement system who are initially reemployed by an FRS employer on or after July 1, 2010, are not eligible for renewed membership 82 41

42 FRS Pension Plan Presentation Retirement Videos on Members page of Webcast State Employee Retirement Seminar Presentation at Agency Contact the Division Toll free: Phone: Questions? 84 42

43 Disability Benefits Section Division of Retirement Chad Poppell, Secretary Disability Retirement Benefits (Ch (4), F.S.) The Florida Retirement System (FRS) provides disability coverage under Chapter 121, Florida Statutes, to eligible members of the FRS Pension Plan (PP) and the FRS Investment Plan (IP). To qualify for disability retirement benefits, a member must be totally and permanently disabled from performing useful and efficient service as an officer or an employee upon termination from FRS covered employment

44 Types of Disability Two types of Disability retirements are available under the FRS if members are vested and meet the requirements of being totally and permanently disabled as outlined in Chapter (4), F.S.: 1) Regular Disability Retirement For members that become disabled due to an illness or injury not related to their FRS employment. 2) In Line Of Duty (ILOD) Disability Retirement For members that become disabled due to an illness or injury that arises out of and during the performance of their duties as required by their FRS employer. NOTE: In line of duty disability benefits are tax free up to the minimum percentage based on member s class of membership. Competent medical evidence supporting all in line of duty claims are required, including the notice of injury. 87 ILOD Presumptions There are certain Special Risk positions at risk for diseases that the law finds to be incident to employment (Ch and ,F.S.) and when approved for disability due to one of the qualifying conditions, are considered ILOD. Hepatitis, Meningococcal Meningitis, or Tuberculosis Effective 1/1/1996 Firefighters, Paramedics, Emergency Medical Technicians, Law Enforcement Officers, and Correctional Officers ** Employers must maintain a record of known or suspected exposure. Tuberculosis, Heart Disease, or Hypertension Effective 7/1/1999 State Law Enforcement Officers and Firefighters. Effective 7/1/2002 Local Law Enforcement and Correctional Officers were included. NOTE: Members must have successfully passed a pre employment physical examination that failed to reveal any pre existing related conditions

45 Vesting Requirements Regular Disability Benefits For members who were employed in an FRS covered position on or after July 1, 2001, they must have 8 years of creditable service regardless of the plan they are enrolled in. However, members who terminated employment prior to July 1, 2001 must have 10 years of creditable service. (Ch (4)(1), F.S.) Pension Plan For members employed on or after July 2001, they may purchase enough additional service years to obtain 8 years of creditable service if vested under the service retirement provisions (6 years). For those members prior to July 2001, they do not have the option of purchasing additional service; however they may return to FRS covered employment and earn additional service credit. Investment Plan There are no provisions for members to purchase additional service, nor do they have the option of selecting service retirement. In Line Of Duty Disability Benefits Applies to members who were employed in an FRS covered position and injured or became ill out of the actual performance of their required employment duties during their scheduled working hours as required by the employer. (Ch (13), F.S.) Pension Plan and Investment Plan Members are vested for in line of duty disability retirement from the first day of their FRS covered employment. 89 REQUIRED DOCUMENTS: Determining Eligibility Application for Disability Retirement, FR 13/PR 13 This form is the member s responsibility for submitting, properly signed and notarized. Employer s Statement of Disability, FR 13A This form must be completed by the personnel office of the members employing agency. Two Physician Reports, FR 13B Any two Florida licensed physicians who have treated the member and can attest to their total and permanent disability must complete and return this form to our office. (these can not be completed by: Psychologists, Optometrists, Dentists, or out of state doctors) NOTE: The following documents although required, do not determine eligibility: Additional Supporting Documents (applications received 8 months after termination) A Social Security award notice (must indicate the date the member was deemed disabled by Social Security), a doctor's statement (must indicate the date of total and permanent disability). Additional Supporting Documents (ILOD applications) A copy of the notice of injury, any workers compensation settlement agreements, and pre employment physical for presumption claims

46 Members NOT Eligible Members who are only partially or temporarily disabled. Ch (4)(b), F.S. Deferred Retirement Option Program (DROP) participants. Ch (13)(c)8,F.S. Renewed members for both pension plans. Ch (1)(b),F.S. Members of the IP who have taken a distribution. Ch (2)(b)2.d, F.S. Members who have been or are employed with any other employer after termination from the FRS. Ch (4)(c)2.c, F.S. Members who do not live past their effective retirement date. Ch (7)(b), F.S. Members who are currently receiving a service retirement benefit from the FRS. A member cannot change his type of retirement or option selection after any benefit payments have been cashed or deposited. Exception: The member has a hearing pending with the State Retirement Commission and a Service Retirement Agreement is on file. Ch (4)(d),F.S. 91 Process for Denials An Intent to Deny letter is sent to member, via certified mail, notifying him/her of the Division s intent to deny disability claim. The member has 21 days from the date of receipt of letter to submit additional medical information for reconsideration. If additional medical information is not received within the 21 day timeframe or the additional medical submitted does not approve the disability claim, the member is sent a Final Agency Action letter, via certified mail. At this stage the member has several options: Petition for a hearing before the State Retirement Commission (SRC). If vested for service retirement, the member can complete the Service Retirement Agreement to receive service retirement benefits while appealing through the SRC. However, if the SRC upholds the denial, the member is considered to have retired and will not be able cancel service retirement nor reapply for disability retirement. Return to work Defer retirement until closer to normal retirement age NOTE: Petition for appeal must be filed with the State Retirement Commission within 21 days from the date that the member receives the Final Agency Action letter 92 46

47 Recovery from Disability If an approved disabled retiree recovers and/or returns to employment in any capacity, the FRS can immediately discontinue benefits. (Ch (4)(h), F.S.) There are no provisions under the FRS to allow disabled retirees to receive a disability benefit and be gainfully employed. (Ch (9)(a) and (b), F.S.) Authorized by law, the administrator conducts periodic reexaminations to determine continued total and permanent disability at the expense of the retirement fund. (max $100 for reimbursement to disability recipient) 93 Disability Determinations The Division receives approximately 1200 disability applications each year of which approximately 70% meet the criteria for disability benefits and are approved. Less than 10% of the applicants denied by the Division appeal and come before the State Retirement Commission It takes our staff of 6 less than 30 days to process an application once all documents are received. For the prior fiscal year approximately 840 members were added to the pension payroll that qualified for disability benefits

48 Questions? 95 Deferred Retirement Option Program (DROP) Termination and Refund Payments Section Bureau of Benefit Payments Division of Retirement Chad Poppell, Secretary 48

49 DROP Termination Employer Handbook Chapter 9 When does DROP end? Required employment termination at the end of the Division approved DROP period Any early DROP employment termination (voluntary or involuntary) DROP Termination Notifications: Three Months Before Scheduled Termination Date DROP termination packets mailed to each DROP participant Memo listing DROP participants scheduled to terminate will be available for retrieval through FRS Online Employer Responsibilities: Authorized signers certify employment termination dates on DP TERM Report early DROP termination dates to the Division in a timely manner Provide information as requested about employment status (Reference: Online Employer Handbook Chapter 2 Page 6) 49

50 DROP Termination Packets Required Forms: Form DP TERM Termination Notification Form DP PAYT DROP Selected Payout Method Additional Information: Cover Letter Special Tax Notice Direct Deposit Authorization Form Direct Deposit Instruction Letter Financial Guidance Brochure Ready. Set. Retire. Booklet Employee Contribution Refunds Employer Handbook Chapter 8 Termination Requirement: First three calendar months after termination of all FRS employment Employer Responsibility: Timely reporting of employment termination on retired payroll report Required Forms: FRS M81 (Pension Plan Request for Refund of Employee Contributions) REF PAYT (Refund Payout Selection) 50

51 Online Services Employers DROP Participant List Early DROP Resignation Date 51

52 DROP Termination Memo Questions?

53 Survivor Benefits Section Bureau of Benefit Payments Division of Retirement Chad Poppell, Secretary FRS PENSION PLAN DEFINITIONS A beneficiary is the joint annuitant or other person, organization, estate or trust designated by the member to receive the benefits, if any, which may be payable in the event of the member s death or the death of another beneficiary. Note: It is important for the member to keep his/her beneficiary designation current. Otherwise, the current spouse of an FRS Pension Plan member who dies before retirement is automatically the member s beneficiary unless the member designated a different beneficiary after his/her most recent marriage. Note: For Active members it is important to name children as contingent beneficiaries. If a child is the beneficiary and not named, an Order Determining Beneficiaries (court order) will be required. 53

54 FRS PENSION PLAN DEFINITIONS A joint annuitant is a designated beneficiary who is: The member s spouse; The member s natural or legally adopted child who is under age 25 at time of member s death, or who is physically or mentally disabled and incapable of self support; The member s parent or grandparent who was financially dependent upon the member at the time of death for at least one half of his or her financial support; or Anyone for whom the member, at the time of death, was the legal guardian and for whom the member was providing at least onehalf of his or her financial support. FST 12 FORM Beneficiary Designation Retired/DROP Participants Use to designate or change beneficiaries on Option 1or Option 2. Option 2DROP members may designate contingent beneficiaries to receive remaining benefits if there is a remaining balance. Option 3 or 4DROP members may designate contingent beneficiaries for their DROP accumulation balance only. NOTE: Do not use for retired members or DROP participants who chose Option 3 or 4 and want to change their joint annuitant. 54

55 Active Members In Line of Duty Death, is defined in Chapter (14), Florida Statutes as: A death arising out of and in the actual performance of duty required by a member s employment during regularly scheduled working hours or irregular working hours, as required by the employer In Line of Duty Death with Presumption provisions is defined in Chapter , Florida Statutes, and provides that certain deaths will be presumed to have been suffered in the line of duty unless competent medical evidence proves otherwise. In Line of Duty Death *As of July 1, 2016 *Monthly benefit for Special Risk Class in the Pension and Investment plans is equal to 100% of the member s base monthly salary. Monthly benefit for Regular Class is equal to one half of the member s base monthly salary. Surviving spouse is eligible regardless of beneficiary designation. If no spouse survives the member, the ILOD death benefit is payable on behalf of the member s unmarried children under the age of 18 until the youngest child reaches age 18. *For Special Risk Class if the child is unmarried and a full time student the benefit continues until age 25. ILOD death benefits are not taxable. 55

56 Reporting Death of an Active Member Information needed Date of death Was termination due to death? Regular or In Line of Duty Spouse name, address, date of birth, date of marriage Children name, date of birth, guardian s name and address Informant name, address, relationship Required Document from Agency Form FC 1, Salary Certification (for the last four months) How to Report a Death AGENCY LOG IN 56

57 How to Report a Death SUBMIT DEATH NOTICE Pension Plan Reporting Deaths Retiree Re employed retiree DROP participant Active member Joint Annuitant of FRS Option 4 retiree Any payee receiving pension benefits Investment Plan Report ILOD death to the Pension Plan and the Investment Plan. Report the death to Aon Hewitt at , prompt 4. Report the death to the Division of Retirement only if there is a surviving spouse. If the surviving spouse is the primary beneficiary, he or she may be eligible for the HIS when the member would have reached normal retirement age. 57

58 Questions? 115 Contacting the Division Toll free Phone: Phone: T.T.D. Phone: Fax: