Overview
As a new State employee, in a benefits-earning position, you must choose one of three retirement plans available to employees eligible for the State University System Optional Retirement Program (SUSORP). All three plans are funded by you and your employer and offer important benefits. See a comparison of all three plans.
Based on your position type, you may be eligible for the following plans:
- FRS Pension – A traditional defined benefit retirement plan designed to pay you a set amount for your lifetime, after you have met minimum vesting and retirement requirements.
- FRS Investment – A defined contribution retirement plan where the benefit depends on the amount of money contributed to an employee’s account and its growth over time. Employees decide how to allocate the money in your account among the available investment funds.
- State University System Optional Retirement Program (SUSORP) – A defined contribution retirement plan where the benefit depends on the amount of money contributed to an employee’s account and its growth over time. Employees decide how to allocate the money in your account among the available investment funds.
Upcoming Retirement Webinars/Workshops
Enrollment
Who is eligible?
- Administrative employees are eligible for FRS Pension Plan, FRS Investment Plan, Optional Retirement Program (ORP), and Voluntary Retirement Plans 403(b) / 457(b).
- Executive Service employees are eligible for FRS Pension Plan, FRS Investment Plan, Optional Retirement Program (ORP), and Voluntary Retirement Plans 403(b) / 457(b).
- Faculty members are eligible for FRS Pension Plan, FRS Investment Plan, Optional Retirement Program (ORP), and Voluntary Retirement Plans 403(b) / 457(b).
- Staff employees are eligible for FRS Pension Plan, FRS Investment Plan, and Voluntary Retirement Plans 403(b) / 457(b).
Additional Resources
- New Employee Retirement Presentation
- SUSORP Provider List (PDF)
- MyFRS Financial Guidance Line (866) 446-9377
- Loans/Hardship Withdrawals – Loans and hardship withdrawals are not permitted under the State Retirement FRS/SUSORP plans. However, if you have a voluntary 403(b) or 457(b) deferred compensation plan, these plans may offer loan options. To request a loan or hardship withdrawal from your 403(b) and/or 457(b) plan account(s), participants should directly contact their chosen investment provider(s) to submit the request.
Plan Funding and Contribution Limits
State retirement plans are funded by mandatory employee and employer contributions. Contribution rates are established by Florida law and cannot be changed by either the employee or the employer.
Employee Contributions
Based on Florida law, employees contribute 3% of their pretax salary (compulsory), beginning with their first paycheck, regardless of the retirement plan selected.
Employer Contributions
Employer contributions are calculated as a percentage of the member’s gross monthly salary. The percentage varies based on the employee’s membership class and is determined by the Florida Legislature and applicable plan provisions.
Employees enrolled in a defined contribution plan, such as the FRS Investment Plan or the SUSORP, may see both their own contribution and the employer contribution reflected in their paycheck. The employer contribution shown represents a “blended rate”, which includes the base employer contribution plus additional employer-paid fees associated with account administration and funding. Only the base employer contribution, in addition to the employee’s contribution, is deposited into the member’s defined contribution account. The remaining percentage is allocated for plan administration and to support the long-term solvency of the program.
Contribution Limits and Salaries Exceeding Federal Limits
As required by Section 121.71(2), Florida Statutes, employee contributions are treated for tax purposes as employer-paid employee contributions (commonly called an employer pick-up) under Internal Revenue Code Section 414(h)(2).
Contributions are subject to federal limits under IRC Section 415, and salary considered for contributions is limited under IRC Section 401(a)(17).
Contributions are limited by Section 415 of the Internal Revenue Code. In addition, compensation taken into account for any plan year shall not include any amounts in excess of the s. 401(a)(17), Internal Revenue Code limitation.
The Internal Revenue Service imposes limits on the amount of salary that may be used for contribution purposes, as well as the total amount of contributions that may be made on the employee’s behalf during the fiscal year. As determined by the Florida Division of Retirement, employees who initially became members of a State of Florida retirement plan before July 1, 1996, are subject to a higher limit, adjusted annually by the IRS to reflect cost-of-living increases. Contributions are not made on salary exceeding these limits, and retirement benefits are calculated only on the salary that qualifies for contributions.
For further reference, refer to the MyFRS Plan Funding section (FRS Plans) and the State University System Optional Retirement Program (SUSORP) Plan Document.