The control members have over their Investment Plan account is a key difference between the Investment Plan and the Pension Plan.
Once an Investment Plan member’s account is activated, the member can change their current investment elections and investment allocations anytime by telephone or online, subject to certain restrictions set out in the FRS Investment Plan Summary Plan Description and Section 19-11.004, Florida Administrative Code. Choosing Investment Funds for Future Contributions (Investment Elections)
An investment election defines how the member wants future contributions to be allocated among the Investment Plan’s investment funds.
New members can make their initial investment fund choices when they first enroll. All account contributions, including the current account balance, future contributions, rollovers, and Pension Plan transfers, will be directed according to these fund choices. If an initial investment fund election is not made, or the member enrolls via the EZ form options, the member’s fund allocation will default to an age-appropriate Retirement Date Fund.
Current members can change their investment elections at any time. These changes take effect the next time employee and employer contributions are deposited in the member’s Investment Plan account.
Investment elections must be made in 1% increments, totaling 100%.
Regular, Special Risk, and Special Risk Administrative Support Class employees can make investment elections using an appropriate form, by logging in to their account through MyFRS.com or by calling the MyFRS Financial Guidance Line.
Employees in all other membership classes can make investment elections using the applicable enrollment form for their membership class. Reallocating Existing Balances
“Reallocating” means moving some or all of an existing balance from one investment fund to one or more other investment funds.
Members can reallocate existing balances among the plan’s various investment funds on MyFRS.com or by calling the MyFRS Financial Guidance Line, Option 4.
Members can make investment fund allocation changes daily, subject to the Investment Plan’s Excessive Fund Trading Guidelines.
Fund allocation changes for existing balances take effect at the close of business on the day the request is made, provided that the request is completed by 4:00 p.m. ET. If the request is completed after 4:00 p.m. ET or on a non-business day, the change will generally take effect at the close of business on the next business day. Excessive Fund Trading Guidelines
The Excessive Fund Trading Guidelines protect Investment Plan members by preventing the frequent movement of money in and out of funds for the purpose of short-term gains. This type of activity can hurt a fund’s shareholders by increasing the fund’s trading costs, making it harder for the fund’s managers to manage the fund, and potentially reducing the fund’s investment returns.
The Excessive Fund Trading Guidelines apply to all funds in the Investment Plan except the FRS Money Market Fund and funds within the Self-Directed Brokerage Account (SDBA).
All Investment Plan members, including current members, previous members, members who have rolled over DROP funds into the Investment Plan, surviving beneficiaries and other alternate payees are governed by these guidelines.
These guidelines apply only to transfers of money between funds. They do not apply to administrative transactions, such as depositing employer or employee retirement contributions, processing a payout, or any other exempt administrator-initiated transactions, such as processing a Qualified Domestic Relations Order (QDRO) or mapping funds from terminated products.
Any member who is not in compliance with these guidelines will be notified in writing. The member may be blocked from initiating trades via the internet and may be required to conduct future trades by phone. If the violations continue, the member may be required to conduct trades by submitting paper trading forms via certified/return receipt to the SBA.