Florida Nudges Teachers Into A Portable Retirement Plan
Florida offers its teachers a choice. When they begin working in Florida schools, they can choose to join the state’s traditional defined benefit pension plan, or they can enroll in a portable defined contribution plan instead. The state has an entire website devoted to helping teachers decide which plan is best for them given their age, how long they plan to stay, and how comfortable they are investing money.
At first glance, Florida seems neutral about which option teachers choose. When I took the quiz to identify which plan would be better for me, it recommended the portable DC plan and reassured me that there were a range of investing options, even for people who weren’t that confident in their investing abilities. Another state document has a nifty chart estimating which teachers would be better off in which plan, depending on their starting age and how long they planned to stay. It looks like this:
The state’s own estimates suggest that anyone who starts teaching in Florida under the age of 45 would be better off in the portable “Investment Plan.” Even for people who begin teaching later in life, they would benefit from the DB Pension Plan only if they stayed more than 8 but less than 23 years. So, Florida is essentially telling teachers that there’s only a small sliver of teachers for whom the DB Pension Plan would be a better option.
Pension/tax Questions Or Bank Or Address Changes Etc Please Contact The Florida Retirement System: 850
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About The Frs Investment Plan
The FRS Investment Plan is a defined contribution program designed for employees who may leave the FRS before retirement. Your benefit is based on how much money is contributed into your account and how well that money grows over time. You qualify for a benefit after completing 1 year of creditable service with an FRS employer. Your account is portable and you decide how much risk to take by allocating your account balance among investment funds.
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Senate Passes Legislation To Modernize Safeguard The Florida Retirement System
No changes for current employees, Preserves pension option for new hires in Special Risk Class
The Florida Senate today passed Senate Bill 84, Retirement, by Senator Ray Rodrigues . The legislation modernizes the Florida Retirement System by closing the pension plan to new enrollees, except for members of the Special Risk Class, and requiring participation in the investment plan , effective July 1, 2022. The bill does not impact the ability of any current FRS employee to select participation in the pension plan or the investment plan. Changes included in the bill only pertain to non-Special Risk Class FRS employees initially enrolled in the system on or after July 1, 2022.
I started looking at this issue when I was first elected in 2012. Back then the unfunded liability of our pension plan had grown from $15.4 billion in 08-09 to $21.6 billion in 12-13. The UAL of the pension plan is now up to $36 billion, having increased $5.7 billion in the last year alone. We have seen examples in other states of how quickly conditions can change and a government can experience financial crisis under the weight of its future retirement obligations. Waiting until conditions worsen in Florida to fix these problems is like closing the barn door after the horses are out, said Senate President Wilton Simpson .
Frs Investment Plan For Teachers

In addition to having your FRS Pension as an option, teachers have an FRS Investment Plan option. You can think of the investment plan as a 401k. You will invest your money in mutual funds that you pick and depending on how these investments perform, thats how much money you will get in the long run.
However, unlike a 401k, there is a required contribution. As you will have to contribute 3% and the state will add funds for you.
The FRS Investment plan has a higher risk and a potential higher reward than the pension plan. But be very careful before switching between these two plans. Make sure you consult a financial advisor before making any decisions.
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Frs Pension For Teachers
You can think of the FRS pension as mail box money. To make it easy for you we included a calculator below so you can estimate how much money you will receive.
You will receive mail box money for the rest of your life, no matter how long you live. The amount of money you will receive will be base on your years of service.
An Overview Of The Florida Retirement System
Employees filling a âRegularly Establishedâ position are automatically members of the Florida Retirement System . The FRS allows you to choose from one of two retirement plans: The FRS Pension Plan or the FRS Investment Plan. Additionally, the FRS offers free and personalized educational resources to help you understand your options and prepare for retirement. New employees must choose their FRS plan by the end of the eighth month following their month of hire.
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Members First Enrolled In The Frs On Or After July 1 2011
Tips To Adequately Prepare For Retirement
- When most people think of retirement, they imagine a time that involves relaxing and enjoying their family. But to be sure thats what youre doing, you not only need to save for retirement. You also need to grow your savings through investing. Unfortunately, the interest you can earn from a bank account or certificate of deposit probably isnt going to be enough.
- A financial advisor can advise you on investing and manage your portfolio. SmartAssets free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If youre ready to find an advisor who can help you achieve your financial goals, get started now.
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How The Florida State Teacher Retirement System Works
If you are a teacher in Florida, you are likely part of Floridas state pension retirement system. It allows you to access retirement benefits as soon as you hit retirement.
Throughout your career, you contribute a small amount to your districts pension plans.
Unlike the other states, Florida offers state teachers two retirement plans:
the FRS pension plan,
and the FRS investment plan.
This allows teachers to begin withdrawing retirement funds, as soon as you hit retirement!
Florida Retirement System Adjusts Contributions Participation Period
A new law will adjust employer-paid contributions in the Florida Retirement System and the participation period for certain employees.
State Representative Jay Trumbull introduced the bill the state House and Senate on March 14, 2022 each unanimously passed the conference report that reconciled each chambers versions, and Gov. Ron Desantis signed it into law on June 2. The measure increases the contribution rates paid by employers participating in the Florida Retirement System . Beginning July 1, 2022, the amount of employer-paid contributions allocated to each active members investment plan account will increase by 3% of the members compensation. The new law also extends the period that law enforcement officers may participate in the Deferred Option Retirement Program from 60 months to 96 months. To be eligible for this extended participation period, the law enforcement officer must be participating in DROP before July 1, 2028.
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Unlock Account / Change Password
- SSN: Your Social Security Number â the 9 digit number that the government gives you as an identification number. This number is used at first time registration of your user profile, to unlock your account and to retrieve a forgotten password.
- PIN: Your Personal Identification Number â the number assigned and sent to you by the state of Florida is used for first time registration. Once registered, you need to keep your PIN in a safe place because you may need it in the future, but you will use your user name/password combination going forward on MyFRS.com. If you cannot remember your pin, or call the MyFRS Financial Guidance Line toll-free at 1-866-446-MyFRS .
- User ID: This is the name you give yourself during the MyFRS.com registration process. You should also keep your user name in a safe place for future use.
- Password: You create your password during the MyFRS.com registration process. You should also keep your password in a safe place for future use.
How Long Do I Have To Work To Retire

In order to receive a pension you will need to meet a required age or years of service. This requirement will be different for high risk jobs than for regular risk jobs.
High risk: 25 years of service or age 55
Regular risk: 33 years of service or age 65
If you reach either of those 2 marks, you will be able to retire an receive a pension. The amount you will receive will vary depending on how many years of service you worked.
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Free Frs Comparison Report
Get a detailed projection and comparison of Pension vs Investment Plan.
In this report we will answer all the question you can have, this way you can make an informed decision on what plan is best for you.
Answers like:
- How much will I get?
- What are the risks?
- When can I switch?
Every FRS member needs to read this report
The FRS will probably be your largest financial asset Not a car, not a house the FRS. Think of how much work you put into researching a car purchase.
Doesnt it make sense to learn everything about the FRS?
Unlocking Your Account Online
To unlock your account via online access, please do the following:
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Florida Teachers’ Retirement System
MyFRSOnline specializes in serving the unique needs of public employees in the Florida Retirement System. Our mission is to help public service employees maximize their state pension while planning for exposure and pitfalls in retirement.
We are in no way affiliated with the Florida Retirement System or the Florida Division of Retirement. This website is only a resource for participants to understand their benefits in an impartial way.
How Many Years Do You Have To Work For The State Of Florida To Be Vested
The Florida Retirement System is required to ensure there are sufficient funds available to you when your retirement benefits are due, thus bearing the market risk and the investment decisions. The FRS Pension Plan was established to serve long term service employees who spend most of their career with the FRS. Employees who prefer not to manage their own retirement plan and older employees may prefer the FRS Pension Plan. All employees of FRS are eligible for the Pension Plan except for Mandatory State University System Optional Retirement Program members and Teachers Retirement System members.
Your benefits are back-loaded. This means you will accumulate your benefits more slowly at first, then begin to accumulate them at a quicker pace the longer you stay. In contrast, in the FRS Investment Plan, you will accumulate your benefits fairly evenly throughout your career with minor fluctuations in alignment with market fluctuations based on your investment strategy.
You are vested after you have completed six yrs of service is you were enrolled in FRS before July 1, 2011 and after eight yrs of service if you were enrolled in the FRS on or after July 1, 2011.
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Types Of Retirement Systems In Florida
The state of Floridas retirement system is massive. Still, its plans are pretty straightforward. All state employees are eligible for either the pension plan or the defined contribution plan . The exceptions are members of the Mandatory State University System Optional Retirement Program and the Teachers Retirement System. Also, participants in the Deferred Retirement Option Program are not eligible for the Investment Plan. Here are all the plans under the FRS umbrella and eligible employees:
Senior managers employed by the state of Florida, the Florida State Board of Administration, the Judicial Branch, the Legislature, the Executive Director of the Ethics Commission and the Auditor General
Florida Retirement Systems | |
Florida Retirement System Investment Plan | All full- and part-time employees of the state of Florida |
Florida Retirement System Pension Plan | All full- and part-time employees of the state of Florida |
State University System Optional Retirement Program | The president of each state university The chancellor of the Division of Colleges and Universities of the State Board of Education |
Senior Management Service Optional Annuity Program | |
Deferred Retirement Option Program | FRS Pension Plan members |
Hired Before July 2011
The above takes into consideration those who enrolled in the pension plan after July 1, 2011. For those who enrolled before July, 2011, here is what you need to know:
- Normal retirement age members is set at age 62 with a minimum of 5 years of service
- Have 30 years of special risk service, regardless of your age at retirement
- If you are at least age 62 years old
After you reach normal retirement age, you are entitled to receive the full value of your pension, based on the factors detailed above.
However, you do have the right to receive your vested benefits before reaching full retirement age. If you make the decision to do so, your payout is subject to an early retirement reduction.
As a high risk employee, such as a police officer, you gain access to a special set of eligibility requirements under the FRS Pension Plan. Its important to become familiar with the plan as a whole, the amount of money you can receive upon retirement, and when youre able to start collecting.
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IMPORTANT:Investment Analysis Methods:About Your Information:About Your Retirement Forecasts:Retirement Income Goal and Likelihood of Reaching Goal:Estimated Retirement Income:Forecasting Risk Over Time: Current Savings:New Savings: Contributions are Assumed to Continue: Contributions to an Account with a $0 Balance: Other Retirement Income Sources:
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How Many Years Do You Have To Work For The State To Retire

For retirees enrolled prior to July 1, 2011:
You must be at least 62 with six or more yrs of FRS service to qualify for retirement under normal retirement and receive your full monthly benefit if you were enrolled prior to July 1, 2011. Or, you can retire earlier if you have over 30 yrs of FRS service completed. If you are a Special Risk Class member, you can retire at 55 if you have at least six yrs of Special Risk service or have 25 yrs of Special Risk service, or at age 52 if you have 25 yrs of Special Risk service and military service.
If you are interested in early retirement, you will receive a reduced monthly benefit. For early retirement with the reduced monthly benefit, you are required to have six or more yrs of service, but you can retire at any age. Your reduction will be 5 percent for each year of your age that is younger than the normal retirement age .
For retirees enrolled on or after July 1, 2011:
You must be at least 65 yrs old with eight or more yrs of FRS service to qualify for retirement under normal retirement and receive your full monthly benefit if you were enrolled on or after July 1, 2011. Or, you can retire earlier if you have over 33 yrs of FRS service completed. If you are a Special Risk Class member, you can retire at 60 if you have at least eight yrs of Special Risk service, or have 30 yrs of Special Risk service, or at age 57 if you have 30 yrs of Special Risk service and military service.
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