Frequently Asked Questions on Enrolling in a Retirement Plan
 

What plan am I eligible to participate in?

Staff employees are eligible to participate in the Florida Retirement System's Pension (FRS) or Investment Plan (Public Employees Optional Retirement Plan- PEORP). A&P and Faculty are eligible to participate in the FRS, PEORP, or the Optional Retirement Program (ORP).
 

What are the vesting requirements in each plan?

Optional Retirement Plan (ORP) – vesting is immediate once enrolled

Public Employee’s Optional Retirement Plan (PEORP) – vesting is 1 year

Florida Retirement System Pension Plan (FRS) – vesting is 6 years
 

What is the enrollment period for ORP?

If you are eligible for the ORP (A&P or Faculty), you have 90 days from your hire date to enroll in this plan and initiate a contract with a provider company.  Once you are past the 90 day enrollment period, you are no longer eligible to enroll in this plan.
 

What is the enrollment period for the PEORP (also referred to as the FRS Investment Plan)?

You have until the end of your 5^th month after your hire date to sign up for the PEORP. Once you are past this enrollment period and do not sign up for the PEORP, you will be automatically enrolled in the FRS pension plan.
 

What is the enrollment period for the FRS Pension Plan?  

If you do not choose the ORP (if eligible) or the PEORP, then you are automatically enrolled in the FRS.
 

What if I sign up for the PEORP and decide later I want to sign up for FRS? Or sign up for the FRS and then later want to sign up for PEORP?

You have a one time life time option to switch plans after your initial enrollment period. Once you use your 2^nd election to switch plans, the new plan will be your new retirement plan and cannot be changed again. The FRS plan administrator would calculate a value of your pension plan and transfer that amount into the PEORP account for you. Most employees that make the change will get an estimate of the value of their pension plan before deciding. An estimate can be obtained by calling the MyFRS Financial Guidance Line at 1-866-446-9377 from 9am to 8pm ET, Monday – Friday. You can also access your information on-line at MyFRS.com.
 

If I sign up for the PEORP and later on in my career I get a position that is ORP eligible, can I change to the ORP plan?

Once you are in the PEORP plan you cannot change to the ORP plan unless you use your 2^nd election to change back to the pension plan and then elect the ORP plan within 90 days of your new position hire date. You would be “buying” your way back into the pension plan, so depending on the cost and how you PEORP plan is doing, you may or may not be charged additional to do this.  This can be a very serious decision and would need to be coordinated through the USF Retirement office which would in turn coordinate with the Division of Retirement.
 

What amount is contributed into the ORP?

For fiscal year 2005-2006, the employer contributes 10.42% of your bi-weekly salary into your ORP plan. You can also elect to contribute any amount up to 10.42% of your bi-weekly salary. The employee election amounts can be changed at any time. The contributions are sent to your provider company on a bi-weekly basis.
 

What amount is contributed into the PEORP?  

For fiscal year 2005-2006, the employer contributes 9% of your bi-weekly salary into your FRS Investment account for regular class employees and 20% for Special Risk employees (USF police officers). Employee contributions are not allowed.  The contributions are sent to the FRS Plan Administrator to be deposited into your account on a monthly basis.
 

What amount is contributed into the FRS?

For fiscal year 2005-2006 the employer contributes 7.83% of your bi-weekly salary into the FRS Trust Fund for Regular Class employees and 18.53% for Special Risk employees (USF police officers). The amount that is contributed by the employer is based on the financial status of the FRS Trust Fund. Regardless of the amount the employer contributes under this plan, your retirement benefit is based on a formula: Years of Service X 1.60% X Average of 5 highest years of Salary = yearly benefit. (The 1.60% is for 30 years of service or less or age 62; 1.63% for 31 years of service or age 63; 1.65% is for 32 years of service or age 64; and 1.68% is for 33 years of service or age 65).  
 

What are the differences in the plans?

You have many sources to use to help you make a decision in what plan to choose. You can refer to the Plan Comparison chart that is listed on the menu under retirement plans of this document, or you can access information on the Division of Retirement’s web site at www.frs.state.fl.us or also on the MyFRS website at www.MyFRS.com .  The retirement office also schedules appointments to discuss your options individually. You can call (813) 974-5718 to schedule an appointment.