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How long does New Hire Kit take to get received?
1-3 months
When does an IP balance get funded if you switch to the IP today?
When changing from Pension to Investment plan, the IP balance typically becomes visible the last business day of the effective month
Former DROP participants who took their DROP distribution as a cash lump sum payment are not eligible to roll monies to the Investment Plan in the future
True. Only those that rolled over the funds to another plan can do this.
Are IP distributions taxed at the state level?
IP distributions may require additional state tax withholding, if a retiree lives in a state that taxes retirement income. There are no state taxes in Florida.
Explain the refund of contributions option under the Pension. How long would someone have to wait to process it? What happens when you do?
A refund of contributions is available to members of the Pension that have left FRS employment. They can access it after 3 full calendar months of termination.
It can be rolled over or is a taxable event.
A refund of contributions will only reduce the years of service back to what the member had before July 1, 2011.
Working two FRS positions will not double-up one's service credit - T/F
True.
Is there a 2nd election available to the members that left before 2010 and retired, and came back before 7/2010 and got renewed membership in either plan?
Yes. The 2nd election exists for members who returned to work prior to July 2010 and are in a renewed membership position, working towards a second FRS benefit. The Special Risk class and DROP are not.
Pension applicants who begin their benefits later than NRA will also receive an increased class multiplier, even if they did not work into the year that they were beyond 30 YOS/Age 62 NRA. (T/F)
True. Ex: A RC employee with 20 YOS left work in their 50's, and applies for their pension at age 65, having waited 3 years beyond their earliest eligibility at age 62. They would receive a 1.68% multiplier.
Explain the age 50/ 55+ exception. Give me an example.
If someone leaves work in the year they turn age 50+ as public safety employee or age 55+ as any other employee, they will have penalty free distributions from any employer sponsored plan. If you leave at age 54, but in the year you turn 55, you will qualify for a penalty exception.
Explain the DROP entries and NRA when someone has mixed service. Give me an example.
If someone has mixed service, two DROP entrance dates are given as long as they reach the NRA for each class.
Ex: RC service - 10 yos / SR service - 5 yos / Age 35 in the special risk class
They can enter DROP at age 50, they'd have 30 YOS total. They will not have a reduction.
Explain what would happen if someone left during their initial enrollment period. What would happen if they came back? How is vesting affected?
They can always collect a refund of contributions (PENSION REFUND)
They will have another 1st election enrollment window if they return to FRS employment.
If they return and pick the IP, their old service will be given a value, and it will carry the PP vesting.
Explain the 2 outcomes after submitting a 2nd election to the PP?
By submitting the 2nd election form to buy into the Pension, there may be two outcomes: 1) The member has a surplus, and is moved into the Pension without any invoice being sent out 2) The member has a deficit, and must pay out of pocket. If this is the case, an invoice will be sent from the DoR; the member can choose not to pay, and revert back into the IP
Are HIS benefits available to Pension beneficiaries?
HIS benefits are available for continuation to the named beneficiary under Options 3 & 4
Can Investment Plan members purchase service credit?
You may not purchase service credit (e.g., for past service, prior service, certain military service, leaves of absence, etc.) to increase your Investment Plan retirement benefit.
If you have additional service credit you wish to use toward retirement, you must purchase or upgrade such service under the Pension Plan.
If you have a Spanish speaker, what Queue would you send the case to if you do not speak Spanish?
Counselor Queue - indicating a *SPANISH SPEAKER* is needed.
Where is the PIN sent from? Also, where can I find out if a PIN has been sent out?
Illinios address. You can check the Alight portal, as it technically comes from them.
What are the main factors that affect a Buyback cost? What is the "cost" also known as?
Buy-in costs for IP members switching to the Pension take into account: current age, current service history, life expectancy, projections of future service, projected salary growth, disability/termination/regular retirement likelihood, and the time value of money. The cost is called the Actuarial Accrued Liability.
How early can a member process a pending distribution in the IP?
Early "pending" distribution requests can only be made with one's PIN, over the phone. 45 days in advance for full access. 15 days before for 10%
Are pension checks taxed at the state level?
Pension checks may be taxable in states that tax retirement income.
Forfeited balances will also forfeit the service credit earned in conjunction with that balance
True.
A rescission period lasts until 4pm est on the last business day of the effective month.
Rescinding an election- an election can be rescinded if a member is still in the effective month of the plan election. If you encounter an individual who selected a plan and they changed their mind, and it is still that member's effective month, bringing up rescission would be a good idea. Email Andrew Clarke, with the other FRS lead planners CC'ed, and let the member know that if their request to rescind their election and revert back to their initial plan is granted, then the SBA will contact them to sign a release. -In your email to Andrew, please include the member's name, EID, phone number, email, and a statement of their situation.
After making a 2nd election, do my beneficiary designations transfer over to the other plan?
Beneficiaries do not automatically transfer upon making 2nd election. Member must add beneficiaries upon making 2nd election. They can do this online, by phone with Alight Solutions or via form.
What 2 types of payments from the IP do not trigger retirement?
RMDs, De minimis payments.
Can you deduct state income taxes from your pension check?
No. State income taxes owed for another state cannot be deducted from the FRS pension check since Florida doesn't have state taxes.
Can I rollover funds into the IP even after it hits a $0 balance.
The FRS Investment Plan will allow additional rollovers into the plan of outside qualified retirement plans/IRA's, even after the balance has been depleted to $0.00