You can make these changes as follows:
After you retire under the FRS, you can work for any private employer, for any public employer not participating in the FRS, or for any employer in another state, without affecting your FRS benefits.
If you are reemployed in any capacity (FRS-covered or non-covered) in your first year (12 months) of retirement by an employer participating in the FRS, the following apply.
You are considered retired once you terminate FRS-covered employment and request a distribution (including a rollover) from your FRS Investment Plan account. A distribution may not be issued until you have been terminated for 3 calendar months (except that if you have met the normal retirement requirements of the Pension Plan you may receive a one-time distribution of up to 10% of your account balance after 1 calendar month). So, if you are reemployed with an FRS employer prior to receiving a distribution of your benefits, you will not be considered to have terminated.
You may not be reemployed with an FRS-participating employer for the first 12 months after a distribution without suspending your retirement benefits. If you are reemployed by an FRS participating employer within the 6 calendar month period after retirement, your retirement will be voided. You and your employer will be required to repay any benefits you received; your FRS membership will then be reinstated. An alternative to repaying these benefits is to terminate employment for an additional period to satisfy the 6 month termination requirement.
You may not return to employment with an FRS-covered employer until you have been retired for 6 calendar months (i.e., 6 calendar months following the month in which a distribution was taken). If you've been retired for 6 calendar months, and you return to employment with an FRS-covered employer during the next 6 months after retirement, no additional Investment Plan distributions are permitted until you either terminate employment or complete a total of 12 months of retirement.
There is one exception to the restrictions on reemployment limitations after retirement. If you are a retired law enforcement officer, you may only be reemployed as a school resource officer by an FRS-covered employer during the 7th through 12th calendar months after your retirement and receive both your salary and retirement benefits.
After 1 Year
Once 1 year has passed since retirement, you can receive further Investment Plan distributions, even if you are reemployed by an FRS employer.
Effective July 1, 2017, retirees of the Investment Plan, State University System Optional Retirement Program (SUSORP), Senior Management Service Optional Annuity Program (SMSOAP), and State Community College System Optional Retirement Program (SCCSORP) are eligible for renewed membership in the Investment Plan, SUSORP, or SCCSORP. You must be employed in an FRS-covered position on or after July 1, 2017 in order to gain renewed membership. It is important to note this new provision does not afford renewed membership retroactively for the period of July 1, 2010 to June 30, 2017, nor does it grant disability benefits for renewed members. Renewed membership in the FRS is not available for retired members who are initially reemployed on or after July 1, 2010 through June 30, 2017.
Different termination requirements and reemployment limitations apply if you retired prior to July 1, 2010.
If you have any questions, contact the Financial Guidance Line at 1-866-446-9377, option 2, and speak with a financial planner.
Yes, you will owe income taxes on your entire distribution in the year it’s paid to you, unless you roll it over into another qualified plan.
For example, assume your account balance is $30,000 and you cash out. Depending on your tax bracket, with taxes and penalties, your balance may be reduced to $18,000. On the other hand, if you leave it in the Investment Plan until retirement age, you will not pay an early withdrawal penalty and your tax rate may be lower. Think carefully about whether the loss of income is worth it to you.
Your address impacts the withholding applied to the payment(s) you may receive from the Investment Plan. If your address is outside the United States, we’re required to withhold 30% of your taxable income, unless you’ve submitted additional documentation that supports a lower withholding rate.
Reemployed retirees initially reemployed by an FRS employer prior to July 1, 2010 and on or after July 1, 2017 are required to make the 3% employee contribution since they are permitted renewed membership in the FRS. Reemployed retirees initially reemployed by an FRS employer on or after July 1, 2010 through June 30, 2017 are not required to make the 3% employee contributions since they are not allowed renewed membership in the FRS.
If you return to FRS-covered employment, you will return to the Investment Plan, unless you decide to use your one-time second election option to change to the Pension Plan (see "Second Election" for further information).
You are considered a retiree from the Investment Plan if you terminate all employment with any FRS-participating agencies and take a distribution of any kind (lump sum, rollover, annuity, etc.). If you retired and returned to FRS-covered employment prior to July 1, 2010, you are considered a "reemployed retiree" who is a "renewed member" and subject to the laws and rules governing such employees. These laws and rules are enacted by the Florida Legislature and implemented by the appropriate agency and are subject to change.
As a renewed member, you are considered a new employee and are entitled to choose within five (5) months following your month of enrollment in the FRS which retirement plan you wish to participate in: the Pension Plan or the Investment Plan. However, as a renewed member, you are not eligible to participate in the Special Risk Class, the Pension Plan DROP program, or receive disability benefits from either plan based on your renewed membership service. If these benefits are important to you, you should consider not taking a distribution upon termination from FRS covered employment, unless you are actually retiring and do not plan to return to FRS-covered employment in the future.
Effective January 1, 2018, as a new employee you will have until the end of the eighth month after your month of enrollment in the FRS to choose a retirement plan. If you do not choose a retirement plan during this period your default retirement plan will be as follows:
|Membership Class||Plan Default|
|Special Risk Class||Pension Plan|
|All classes (except Special Risk Class)||Investment Plan|
No. Only the spouse of an Investment Plan participant can be beneficiary of the HIS after the Investment Plan Participant dies.
No. Under Florida law, to be entitled to receive FRS disability benefits, your disability must prevent you from "rendering useful and efficient service as an officer or employee." Consequently, you may not draw disability benefits while you are gainfully employed in any capacity by any employer - public or private.
Yes, under certain circumstances. If you can provide medical documentation, including certification by two different licensed physicians, that shows you were totally and permanently disabled at the time of your termination and continue to be totally and permanently disabled, you are eligible to apply for disability benefits. Additionally, you should not have left FRS-covered employment to accept employment with a non FRS employer.