Retirement
FGCU Benefits Staff
Retirement
This presentation is an overview of the Retirement
Plan options available to USPS, A&P and
Faculty employees.
For more detailed information, please visit the
Florida Retirement System (FRS) website at:
www.myfrs.com
Retirement
Retirement Plan Options
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USPS, A&P & Faculty employees
 Florida Retirement System (FRS) Pension Plan
 FRS Investment Plan
Additional Option for A&P and Faculty employees
 Optional Retirement Program (ORP)
Retirement
FRS Pension Plan
The Pension Plan is a traditional defined benefit plan:
 There is no cost to you
 The university makes contribution to the FRS Trust Fund on your
behalf to fund your future pension benefit
 You are vested in the FRS Pension Plan when you have earned 6
years of creditable service
 Your retirement benefit is a guaranteed benefit based on a formula
that includes: age, FRS Membership Class (e.g. Regular, Special Risk,
etc.), and 5 years of highest pay, averaged
Retirement
FRS Pension Plan cont.
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Payment is a guaranteed monthly check for life beginning at
retirement (normal retirement age is age 62 or 30 years of service)
and automatically increased each July by a 3% cost of living
adjustment. Other options provide for continued payments to
your surviving beneficiary/joint annuitant.
Upon reaching normal retirement age, you are eligible for DROP
(Deferred Retirement Option Program)
 Allows you to ‘retire’ without terminating employment for a
maximum of 5 years
 Your monthly pension benefit accumulates in the FRS Trust
Fund, and earns interest compounded monthly to an
effective annual rate of 6.5%
 There are several DROP account payout options available
when your DROP participation ends
Retirement
FRS Investment Plan
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The Investment plan is a defined contribution plan
There is no cost to you
The University contributes a percentage of your salary (9% for
Regular Class members) into an account set up in your name
You select where to allocate contributions from among an
assortment of investment funds
You are vested in your account after one year of creditable
service.
Your retirement benefit is based on your account balance, which
equals:
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employer contributions
plus investment returns
minus expenses, fees, and losses
Retirement
FRS Plan Choice Period
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As a new employee, you must choose one of the two FRS plans.
You have until the end of the 5th month following your hire date to enroll,
otherwise your Plan Choice defaults to the FRS Pension Plan.
After your Choice period, you will have a second opportunity during your
career with FRS to switch retirement plans
Retirement
Compare Pension Plan vs. Investment Plan
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Feel you need more information on these two plans? Click below
and watch a short video that compares the Pension Plan vs. the
Investment Plan.
http://www.fgcu.edu/HR/files/FRS_output.wmv
Retirement
Optional Retirement Program (ORP)
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The ORP is the default retirement plan for A&P and Faculty employees
The ORP is a defined contribution plan
You have 90 days from your hire date to enroll in the ORP and sign an
annuity contract with one of the 5 approved investment provider
companies.
If you do not complete the required enrollments within 90 days of hire,
your retirement plan defaults irrevocably, to the FRS Pension Plan. You
will then have until the end of your 5th full month of employment to
choose between the FRS Pension Plan or the FRS Investment Plan
Retirement
Optional Retirement Program
There are 5 investment providers from which to choose
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TIAA-CREF
Valic
ING
Jefferson National
MetLife
Retirement
Optional Retirement Program
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The University contributes 10.42% of your salary to your ORP account
You are vested immediately in University contributions
You may make your own contributions, but they are not required in
order to receive the University’s contributions
You can start and stop personal contributions at any time
2007 employee contribution limit
Under age 50
Over age 50
$15,500
$20,500
Retirement
Supplemental Tax Sheltered Annuities
(403b)
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The university also offers enrollment in tax-sheltered annuities
Available to all employees
You can start and stop your contributions at any time
Contact the approved companies to enroll
Retirement
ORP and Supp. 403b approved companies
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TIAA-CREF -- http://www.tiaa-cref.org/
Company Representative
Sharon Mohan
561/ 338-0785
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VALIC -- http://www.valic.com/valic2003/aigvalic.nsf/contents/home
Company Representative
Jim Reddington
239/472-9416
email: [email protected]
Retirement
ORP and Supp. 403b approved companies
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ING/Jefferson National - - http://ingretirementplans.com/index.shtml
http://www.jeffnat.com/
Company Representative
Shanna Sullivan/Andrea Modica
800/338-6115
email: [email protected]
MetLife Investor -http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator
Company Represtentative
Diana Frantz
239/997-9834
email: [email protected]
Retirement
Deferred Compensation (457)
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University employees are eligible to participate in the State of
Florida Deferred Compensation Plan, a tax deferred "employee
contribution" investment program.
For plan information and a current list of Deferred Compensation
companies, contact the Office of Deferred Compensation at
877/ 299-8002 or visit their website at
https://www.myfloridadeferredcomp.com/SOFweb/index.htm
Retirement
Human Resources
Howard Hall, Room 239
239/590-1400