SUMMARY COMPARISON OF CHAPTERS 175/185, THE POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUNDS AND CHAPTER 121, THE FLORIDA RETIREMENT SYSTEM

Transcription

1 A. NORMAL RETIREMENT 1. Eligibility: Age Age 55 & 10 or 52 & 25 years service Military Service 5 year limit, must return within 1 year. No contribution required. Age 55 & 6 years of Special Risk Class service or 25 years of Special Risk Class service or age 52 & 25 years of service which may include Special Risk Class service and up to 4 years of wartime military service if initially enrolled on or after July 1, Age 60 & 8 years of Special Risk Class service or 30 years of Special Risk Class service or age 57 & 25 years of service which may include Special Risk Class service and up to 4 years of wartime military service if initially enrolled before July 1, Under the provisions of USERRA member may receive credit for up to 5 years of active military service as a military leave of absence paid by the employer. Additionally, if a member before 1/1/87 up to 4 yrs wartime military service, otherwise up to 5 years of active duty time as out-of-state service; employee contributions required. 2. Amount of Benefit: 2% per year of service. 3.00% of AFC per year of service for active members 3. Average Final Compensation: For full-time, the best 5 of the last 10 years; for volunteers, the greater of the average of the 10 best years or the career average. Best 5 of last 10 years. 4. Normal Form Life or 10 years Certain. Option 1 - Life Annuity Payment Options: 1. Life Annuity If intially enrolled before July 1, 2011, best 5 fiscal years salary during member's covered employment. If initially enrolled on or after July 1, 2011, best 8 fiscal years salary during member's covered employment. A monthly benefit payable for lifetime of member. Upon death, the monthly benefit will stop. 2. Joint & Survivor Option 2 - Life or 10 years certain from date of retirement. 3. Other, at discretion of Board of Trustees. Relation to Social Security: None Social Security Required. B. EARLY RETIREMENT Age 50 with 10 years service. Adjusted, reduced 3% for each year member's age at retirement is under member's normal retirement age. Provides a reduced monthly benefit payment to member for life; if the member dies within 120 months after the effective retirement date, the same amount is paid to beneficiary for the balance of the 120 months. No further survivor benefits are then payable. Option 3 - Joint & Survivor Provides a reduced monthly benefit payable for member's lifetime. Upon death, the joint annuitant will receive a lifetime monthly benefit payment in the same amount as the member was receiving. Special provisions for children under age 25 and disabled children. Option 4 - Joint & Survivor Provides an adjusted monthly benefit payment to member while both member and member's joint annuitant are living. Upon death of either, the monthly benefit payment to the survivor is reduced to two-thirds of the monthly benefit received when both were living. If member has at least 6 years service if intitially enrolled before July 1, 2011, or at least 8 years if initially enrolled on or after July 1, 2011; and is within 20 years of normal retirement age, the monthly benefit will be reduced 5% for each year member's age at retirement is under member's normal retirement age (55 or 60, respectively). C. DEFERRED RETIREMENT OPTION PROGRAM (DROP) None Compulsory Retirement: None Vesting Rights: 10 years. DROP is an alternative method for payout of retirement benefits for up to 60 months. All vested FRS members who have reached normal retirement are eligible. 6 years if initially enrolled before July 1, 2011, or 8 years if initially enrolled on or after July 1, Relation to Social Security: None Social Security Required. D. DISABILITY BENEFITS 1. In-Line-Of-Duty: a. Eligibility: Day one coverage. 1 Summary Comparison to 121.xls 6/11/2013

2 b. Type of Disability: Total & Permanent: cannot render useful service as a firefighter. Total & Permanent; cannot render useful service as a police officer. c. Type of Benefit: (1 ) Amount: 2% per year of AFC 3.00% per year of AFC. (2) Minimum: Not less than 42% of AMC Not less than 65% of AFC. (3) Maximum: Accrued benefit if more than 42%. (4) Duration: Life with 120 months certain, or member may choose optional forms. (5) Survivor Benefits: 1. Balance, if any, of 120 payments. 2. If optional form selected by retiree, then payments continue to beneficiary for their lifetime. Total and permanent from all gainful employment; cannot render useful service as an officer or employee regardless if public or private employment. Accrued benefit if more than 65%, but limited to 100% of AFC at retirement. Life or duration of disability, if less. 2. Non-Line-Of-Duty: a. Eligibility: 10 years of contributing service. 8 years of creditable service. b. Type of Disability: Total and permanent; cannot render useful service as a firefighter. Total and permanent; cannot render useful service as a police officer. c. Type of Benefit: (1 ) Amount as "In-Line-Of-Duty" as "in-line-of-duty". (2) Minimum Not less than 25% of AMC. Not less than 25% of AFC. (3) Maximum The accrued benefit if more than 25% of AMC. (4) Duration as "In-Line-Of-Duty" as "In-Line-Of-Duty" (5) Survivor Benefits: as "In-Line-Of-Duty" as "In-Line-Of-Duty" choices as normal retirement applying disability equivalent actuarial factors. Total and permanent from all gainful employment; cannot render useful service as an officer or employee regardless if public or private employment., but limited to 100% of AFC at retirement. 2 Summary Comparison to 121.xls 6/11/2013

3 E. DEATH BENEFITS 1. Before Retirement: a. In-line-of-duty: (1 ) Lump Sum: (a) 100% refund of employee contribution without interest. (b) If insurance purchased, larger of employees contributions or policy death benefits. (2) Survivor Benefits If a member has at least 10 years of contributing service, the beneficiary is entitled to the benefits otherwise payable to the officer at the early or normal retirement date. b. Non-service-incurred: (1 ) Lump Sum: (a) 100% refund of employee (2) Survivor Benefit: contribution without interest. (b) If insurance purchased, larger of employee contribution or policy death benefits. If a member has at least 10 years of contributing service, the beneficiary is entitled to the benefits otherwise payable to the officer at the early or normal retirement date. 2. After Retirement: a. Lump Sum None b. Survivor's Benefit i. Balance, if any, of 120 payments to beneficiary under normal form. ii. In accordance with option, if elected, for the lifetime of the beneficiary. Surviving spouse or children eligible for 1/2 of last monthly salary from day one. If member is vested, choice between lifetime monthly benefit calculated as retired on date of death or 1/2 of last monthly salary, whichever is greater. If member is vested and provided the beneficiary qualifies as a joint annuitant, a lifetime monthly benefit is payable as if member retired on date of death or the retirement may be be deferred to start at a later date to lessen the early retirement reduction. Early retirement reduction based upon either age or years of service if the member had 20 or more years of service at death. In accordance with option selected. F. COST OF LIVING INCREASE None Retirees receive an annual 3% cost-of-living increase in July of each year based on their June benefit amount if retired before August 1, 2011, or no cost-of-living credit if service is earned on or after July 1, For retirements effective August 1, 2011, with service earned on and after July 2011, the cost-of-living adjustment is a proportion of 3% based on service before and after July 1, Members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. 3 Summary Comparison to 121.xls 6/11/2013

4 G. HEALTH INSURANCE SUBSIDY Trust funds may be established by payment to the fund of an amount equivalent to one-half of the net increase over the previous tax year in the premium tax funds Retirees are eligible to receive a monthly supplemental payment of a minimum of $30.00, based on $5 per year of service, and a maximum of $ While paid at the same time as the retirement benefit, this benefit is separate from the FRS benefit. H. SEPARATION ( OR WITHDRAWAL) BENEFITS % refund of employee's contribution, without interest, less any benefits paid. No further benefits payable. 2. After 10 years service, may leave accrued contributions in fund and upon attaining age 50, may retire at the actuarial equivalent of amount of such retirement income. 3. May leave contributions in fund for up to five years pending rehire. Will receive credit for all years of service. If less than 6 years of service if initially enrolled before July 1, 2011, or if less than 8 years if initially enrolled on or after July 1, 2011; only eligible for refund of member contributions, if any, If vested, member may elect to receive refund of member contributions, defer benefit to normal retirement (age 55 or age 60) or commence at earlier date reduced for early retirement (5% for each year age is under 55 or age 60 depending if initial enrollment date is before July 1, 2011, or on/after July 1, 2011). Service credit remains credited to the member indefinitely. Refunded service credit may be purchased after one year of re-employment. I. NON-PARTICIPATION Mandatory. Chiefs may be allowed to optout by local ordinance. Mandatory. Chiefs may be allowed to optout by local ordinance. Mandatory for regularly established positions. J. CONTRIBUTIONS TO RETIREMENT FUND 1. By Employee: 5% of Salary. (Minimum of 1/2 of 1%). Noncontributory before July 1, 2011, 3% employee contribution effective on and after July 1, By Employer By city, or other sources, an amount necessary to pay the normal cost and fund the actuarial deficiency over a 40 year basis % effective July 1, These rates do not include the 1.11% Health Insurance Subsidy contribution and the 0.03% administrative fee for the administration of the FRS Investment Plan and the FRS Financial Guidance Program. 3. By Others a. The State contributes 1.85% of gross premiums collected on property insurance covering property within the corporate limits of the municipality or boundaries of the fire control district. a. The State contributes.85% of gross premiums collected on automobile, burglary and theft, glass, and fidelity bonds covering property within the corporate limits of the municipality or boundaries of the fire control district. b. Fine and forfeitures. c. Gifts, bequest and devises. d. All accretions to the fund. No additional funding is provided other than required retirement contributions by employer and employees. 4 Summary Comparison to 121.xls 6/11/2013

5 K. INVESTMENT RIGHTS OF BOARD 1. Annuity and life Insurance. Invested by the State Board of Administration (s , F.S.) a. Purchase annuity of life insurance contracts in amounts sufficient to provide, in whole or in part, the benefits to which all participants shall be entitled. 2. Bonds a. Any obligation guarantee by U.S. Government. a. Domestic Equities b. Bonds issued by the State of Israel. b. Foreign Equities c. Up to 10% of plan assets in foreign securities. 3. Banks: c. Fixed Income a. Time & savings accounts of a national bank, or d. Real Estate b. State bank insured by the Bank Insurance Fund, or; e. Cash/short term c. Any savings & loan association insured by the Savings Association Insurance Fund administered by the FDIC or chartered Credit Union, insured by the National Credit Union Share Insurance Fund. d. Corporate bonds, stocks or other evidences of indebtedness up to a maximum of 50% of assets of the fund, but not more than 5% of the fund assets in the common stock or capital stock of one issuing company. L. ADMINISTRATION Board of Trustees Department of Management Services, the Division of Retirement. 5 Summary Comparison to 121.xls 6/11/2013