State HR Conference December 15, 2005. 1 What We Will Talk About Today FRS Retirement Plan Update —Your support has been key in a challenging environment.
Post on 25-Dec-2015
217 Views
Preview:
Transcript
State HR Conference
December 15, 2005
2
What We Will Talk About Today
FRS Retirement Plan Update— Your support has been key in a challenging environment— Legislative changes
The Financial Guidance Program— Resources available to you— Resources available to ALL your employees (PP and IP)
The New Hire Process— Resources— Plan administration
Roles and Responsibilities— Helping your employees help themselves
3
FRS: The Florida Retirement System
FRS is 4th largest U.S. public pension plan — 850 public sector employers— 660,000 working members— 243,000 retired Pension Plan (PP) members
Nearly all members are covered by the defined benefit “FRS Pension Plan”— $109 billion held in trust for Pension Plan benefits as of
June 30,2005
In 2002, FRS Investment Plan (IP) was introduced to provide members a choice
4
FRS Investment Plan – Offering Choice
Currently over 60,000 Investment Plan members $1.7 billion in participant accounts Money entering Investment Plan accounts:
— $15 million in ‘new money’ through FRS employer contributions on a monthly basis
— $50 million through ‘2nd Election’ on a monthly basis
1,500 active IP elections on a monthly basis— 1,000 new hire enrollment elections
— 500 2nd Elections (97% of all elections are into IP)
Active election default rate continues to decrease
5
16
New Hire FRS Plan Choices
87%
74%
63%
5%11%
17%
8%
16%21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sep. 2002 – Jun. 2003 Jul. 2003 – Jun. 2004 Jul. 2004 – Jun. 2005
Defaults Active Enrollments- Pension Plan Active Enrollments- Investment Plan*
6
Employee Use of MyFRS Resources 12 months ended June 30, 2005
Year-Ended June 2005
Annualized Growth
Financial Guidance Line Counseling Calls 113,906 38%
MyFRS.com Sessions 1,241,047 116%
Retirement Income Forecasts 354,982 63%
New Hire Choice Service 16,999 1%
2nd Election Choice Service 76,292 62%
Personal Online Advisor Service 98,805 59%
Workshop Attendance 8,543 33`%
7
Your Support in Promoting Use of All Education Resources
Financial education and counseling resources are available
— They will be around for the long-run, as long as employees use them
Help your employees help themselves— Program resources can help you manage your workload
— Program resources are world class and they work• Independent, objective and available at no cost to employees
— Resources are rated very highly by those employees who use them
8
Generally Housekeeping2nd Election Requirements
Stale-Dated Checks DROP Rollover
IP Retirement Distribution RequirementsIP Reemployment-after-Retirement
Requirements
SB 1446 Legislative Changes – Effective July 1, 2005
9
SB 1446 Legislative Changes – Effective July 1, 2005
2nd Election Requirements— 2nd Election Enrollment Form must be filed with CitiStreet
prior to termination date
— No requirement to work during next month
Pension Plan DROP Accumulations may be rolled over to Investment Plan
10
SB 1446 Legislative Changes – Effective July 1, 2005
Stale-dated Checks— Distribution checks not cashed or deposited within 180 days from
date of issue are considered stale-dated— Check is cancelled and the funds are placed in a suspense
account for up to 10 years while CitiStreet searches for the payee— If the payee is not found within 10 years, the funds are forfeited
and used to pay plan expenses
Investment Plan Retirement Distribution Requirements— Must remain off all FRS payrolls for 3 calendar months— If eligible for Pension Plan normal retirement, may receive up to
10% distribution after 1 month; rest after 3 months unless returned to work (some excepted positions such as substitute/teachers, bus drivers, etc.)
11
SB 1446 Legislative Changes – Effective July 1, 2005
Reemployment-After-Retirement Requirements— Cannot return to FRS-covered employment for 12 months after
retirement, unless in an excepted position
— Cannot return to an excepted position for three calendar months after taking a distribution (seven months from termination)
— If meets normal retirement requirements of Pension Plan may return after one month to a statutorily excepted position (i.e., substitute teacher, adjunct instructor, firefighter, etc)
— Employer may be jointly liable for repayment of funds paid out if retiree is hired in violation of reemployment after retirement provisions, unless employer has a letter certifying retirement status (new employee certification form can be found at MyFRS.com)
12
On-going Program
13
On-going Program – Employer Resources
MyFRS.com Web Site New Hire Roadmap Employer Services Tab
Quarterly Electronic (email) and Hardcopy NewsletterRegular updates on FRS programSpecial newsletters/attachments
On-line Employer CatalogOrder communications
The FRS Employer Assistance Line1-866-FRS-2121 (1-866-377-2121) Open M – F, except holidays,
9 a.m. to 8 p.m. Eastern time (8 a.m. to 7 p.m. Central time)
14
On-going Program – Employee Resources
ALL employees can get their questions answered on financial planning, both FRS Plans, 2nd Election, DROP and Retirement.
Employee workshops: Using the FRS to Plan for Your Retirement, Investment Planning
for Everyone, Estate Planning: Protecting Your
Family, Pension Plan Education (DOR)
MyFRS.com with FAQ’s, brochures,
forms, user notification feature, investment
facts, Advisor Service, Choice Service and 2nd Election Service
Toll-free MyFRS Financial Guidance
Line, staffed by Ernst & Young
financial planners, DOR counselors,
and CitiStreet representatives
Brochures and Videos via MyFRS.com,
Financial Guidance Line and Employers
15
MyFRS Financial Guidance Line – Choice and Financial Planning
One-on-one counseling provided by experienced Ernst & Young financial planners
Impartial and balanced guidance on all financial planning topics
Do not sell products or services Confidential Help with the Advisor Service and Choice Service Toll-free number 1-866-44-MyFRS Available 9 a.m. to 8 p.m. Eastern time (8 a.m. to
7 p.m. Central time), M – F, except holidays
16
Quick Overview of Advisor Service – It’s not just for Investment Plan members
Pension Plan Investment/Hybrid Plan
1. Employee Data is already pre-loaded…
All FRS benefit data (age, salary, service and
membership class)
All FRS benefit data and FRS investment funds
2. Employee adds data/goals (online or though the Financial Guidance Line)…
Family’s non-FRS assets (e.g. 457, 403b, etc.) home value and other retirement plans
3. Advisor Service forecasts…
Total retirement income: FRS (Pension including DROP or Investment Plan), Social Security and non-FRS assets
4. Advisor Services estimates…
The likelihood of meeting an employee’s retirement income goal
5. Advisor Service investment guidance on…
One non-FRS tax-deferred account
FRS Investment Plan account
6. At employee’s cost of $15/year
Get investment guidance across all tax-deferred and taxable investment accounts
17
18
19
On-going Program – Employee Workshops
Using the FRS to Plan Your Retirement— 60-90 minute discussion of 5 keys to retirement planning (including the role of your FRS Retirement Plans)
Investment Planning: The Basics— 90 minute discussion on the basics of investing (no matter which FRS Retirement Plan you participate in)
Estate Planning: Protecting Your Survivors— 90 minute discussion on wills, living wills and health care surrogate powers,
life insurance planning, gifting and estate taxes New Hire Retirement Options Workshop Division of Retirement Workshops on Pension Plan and DROP
Call the FRS Employer Assistance Linefor more information!
20
New Hires – Retirement Plan Choice Resources
MyFRS.com resources— New Hire Roadmap
— FAQ’s, brochures, forms, detailed plan comparisons
— Online Choice Service
— Enrollment
MyFRS Financial Guidance Line available to answer all choice questions (Choice Service)
New Hire videos or workshops
Two reminder letters during 5th month
21
Plan Administration – Resources
The FRS Employer Assistance Line Connects to: Ernst & Young Division of Retirement
— Payroll administration
— Pension Plan questions/calculations CitiStreet
— Investment Plan administration
— MyFRS Financial Guidance Program education materials fulfillment
22
New Hires – Retirement Plan Enrollment Process
On their date of hire, new hires are automatically enrolled in the FRS Pension Plan
If a new hire wants to transfer to the FRS Investment Plan, he/she must file an election before the end of the fifth month following his/her month of hire by submitting a Retirement Enrollment Form
80% of IP enrollments are via the new EZ Enrollment Form and remain in the ‘default’ fund
The FRS Select Moderate Balanced Fund is the default fund in the FRS Investment Plan
23
New Hires – Retirement Plan Enrollment Process
Enrollment Forms are available in the new hire kit, with reminder letters or online at MyFRS.com
If the new hire is a Regular or Special Risk Class employee, he/she can make the choice by paper, online or by calling the MyFRS Financial Guidance Line and having them file the choice
As an active employee, a new hire has the ability to reverse his/her choice one time before he/she retires from or leaves FRS-covered employment
24
Employer Roles and Responsibilities – New Hires
Use the specialized resources in your orientations— FRS Retirement Options for New Employees Brochure— New Hire Videos
• Long version (15 min.) now available via MyFRS.com• Short version (7 min.) available via video
Know where to point new employees to get their plan choice questions answered
— Toll-free MyFRS Financial Guidance Line— MyFRS.com— Workshops
Promote the importance of an active and informed choice between plans
25
Employer Roles and Responsibilities – Existing Employees
Know where to point existing employees to get their questions answered on financial planning, either FRS Plan,
2nd Election, DROP and Retirement
Employee workshops: Using the FRS to Plan for Your Retirement, Investment Planning
for Everyone, Estate Planning: Protecting Your
Family, Pension Plan Education (DOR)
MyFRS.com with FAQ’s, brochures,
forms, user notification feature, investment
facts, Advisor Service, Choice Service and 2nd Election Service
Toll-free MyFRS Financial Guidance
Line, staffed by Ernst & Young
financial planners, DOR counselors,
and CitiStreet representatives
Brochures and Videos via MyFRS.com,
Financial Guidance Line and Employers
26
What We Talked About Today
FRS Retirement Plan Choice Update— Legislative changes
The On-going Financial Guidance Program— Resources available to you
— Resources available to ALL your employees (PP and IP)
The New Hire Process— Resources
— Plan administration
Employer Roles and Responsibilities— Helping your employees help themselves
27
Questions and Answers
State HR Conference
December 15, 2005
top related