Retirement Overview By Eric Kegley. State Retirement Plans SUS Optional Retirement Program (ORP) –Only Faculty and Senior Staff Eligible Florida Retirement.

Retirement Overview Retirement Overview By Eric KegleyBy Eric Kegley

State Retirement Plans

• SUS Optional Retirement Program (ORP)–Only Faculty and Senior Staff

Eligible• Florida Retirement System (FRS)

–Pension Plan–Investment Plan

SUS Optional Retirement Program

• TEAMS-A & Faculty positions are eligible– Determined by position classification

• Defined contribution plan– 403(b) tax-sheltered annuity plan per IRC

• 8.14% biweekly contribution to individual account– 3% mandatory employee– 5.14% employer

• Immediate vesting• Benefit based on account balance at termination of

employment• No State Disability Retirement Option• Reemployment Rule for Renewed Members

FRS Pension Plan• Defined Benefit Plan• 3% mandatory employee contribution• Vesting

– 8 years

• Normal retirement– Age 65 & vested or 33 years of service (any age) if

enrolled on or after July 1, 2011– Deferred Retirement Option Program (DROP)

• Benefit based on years of service, earnings, and service credit value (1.60-1.68%)

• Retirement Disability Option available• Reemployment Rule for Renewed Members

FRS Investment Plan

• Defined Contribution Plan– IRS 401(a)

• 6.3% monthly contribution to individual account– 3% mandatory employee contribution– 3.3% employer contribution

• One-year vesting requirement• Benefit based on account balance at termination

of employment• State Retirement Disability Option available• Reemployment Rule for Renewed Members

Supplementing Your Retirement Plan

Voluntary Savings Plans

• Designed to help meet long-term financial and retirement goals

• Funded by voluntary employee contributions made through payroll deduction

• Available to all employees at any time!

Tax-Deferred Plans

• Before-tax elective salary deferral

• UF 403(b) Plan– Establish a contract with participating investment

provider– Complete Salary Reduction Agreement and submit to

UF Retirement Services– Payroll deduction may be changed at any time– 2014 elective deferral limit: $17,500

– Additional $5,500 if age 50 or over

Tax-Deferred Plans

• State of Florida 457 Plan– Deferred Compensation Plan– 2014 elective deferral limit: $17,500

– Additional $5,500 if age 50 or over– www.myfloridadeferredcomp.com

Roth 403(b) Plan

• After-tax elective salary deferral

• Contributions apply to the 403(b) deferral limit

• Establish contract with company and submit Salary Reduction Agreement form to UF Retirement Services

UF FICA Alternative and Special Pay Plan

UF FICA Alternative Plan

• Employees in certain temporary positions are mandated to participate in lieu of earning credit for Social Security

• Participants contribute 7.50% of their wages and decide how to allocate the money in their account among the available investment funds

• http://hr.ufl.edu/benefits/retirement/fica-alternative-plan/

UF Special Pay Plan

• Faculty, TEAMS, and USPS employees who receive leave cash outs $5,000 or more will participate – Mandated!

• The cash out funds, which are not subject to Social Security taxes, are used to set up a tax-deferred account in the participant’s name.

• http://hr.ufl.edu/benefits/retirement/special-pay-plan/

Financial Literacy And Retirement Education(FLARE)

• Financial Literacy And Retirement Education

• www.hr.ufl.edu/retirement/flare

• Compiled wealth of information in one convenient location– Narrowed down resources from vast array available– Help make educated decisions regarding personal

finances– Resources to make ends meet today and plan for the

future

• Subscribe to the Listserv to receive FLARE related information

• 5 key categories– Budgeting & Saving– Intelligent Investing– Life Events– Retirement Readiness– My UF Benefits

• Four types of resources– Articles– Tools such as interactive calculators and worksheets– Video Workshops– On-site/Live Sessions (seminars and /workshops)

Resources

• UF Retirement Services– www.hr.ufl.edu/retirement

– [email protected]

– (352) 392-2477

• MyFRS– www.myfrs.com

– (866) 446-9377

Questions?