[HRMS] Legislative Updates to the Florida Retirement System

[HR Important Message]

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An important message from FSU Office of Human Resources
This message has been approved by Shelley Lopez, Program Director, Communications/Special Projects, for distribution to all Department Representatives.
The Human Resources Benefits Office has been monitoring the recent legislative updates regarding the Florida Retirement System (FRS). Below are some recent legislative updates to the FRS, including revisions to the Deferred Retirement Option Program (DROP).
A general overview of the recent legislative changes includes:
Employer Contribution Rates - New contribution rates for state-administered retirement programs began July 1, 2023. The employer contribution rates paid into FRS Investment Plan accounts have increased by 2% in all membership classes.

DROP Participation - Eliminated the restrictive entry window for eligible FRS members to participate in DROP for all retirement classes.

  *   It also allows entry into DROP for eligible members at any age as long as years of service or age and vesting requirements are met. The maximum time for a qualified FRS member to participate in DROP increased from 60 to 96 calendar months for all classes.
  *   Please note, current active DROP participants can participate in DROP for up to 96 months.
  *   These employees will need to complete the new Optional DP-ELE form.<https://employer.frs.fl.gov/forms/dp-ele.pdf>
  *   The interest rate applied to a member's accrued monthly benefit increased from 1.3 percent to 4 percent, effective July 1, 2023.

K-12 Instructional Personnel DROP Extension - Extended the maximum amount of time for K-12 Instructional Personnel, as defined by Florida Statute, to participate in DROP from 96 to 120 calendar months, effective June 30, 2023.

Special Risk Class Normal Retirement Date - Effective July 1, 2023, the normal retirement age for members of the Special Risk Class is age 55, if vested, or 25 years of service. Vesting requirements and average final compensation calculations will continue to be based on the employee's FRS enrollment date.
Employees are encouraged to regularly prepare and review their retirement plans, regardless of their retirement account type. Employees participating in the FRS Pension Plan are encouraged to contact the Florida Division of Retirement<https://www.dms.myflorida.com/workforce_operations/retirement/contact_us>, the administrator of the FRS Pension Plan, at least one year before they plan to retire to request an estimate of benefits. Investment Plan participants are encouraged to use the MyFRS<https://www.myfrs.com/> resources to monitor their retirement accounts. Optional Retirement Plan (ORP) participants should use their investment provider(s)<https://www.dms.myflorida.com/workforce_operations/retirement/optional_retirement_programs/state_university_system_optional_retirement_program/susorp_investment_products_and_fees> websites to monitor their retirement account(s).

Questions? Please contact the Benefits Office at retirement at fsu.edu<mailto:retirement at fsu.edu> or (850) 644-4015.



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