Florida Retirement System

Pension Plan (Defined Benefit)

The Florida Retirement System (FRS) is combined with social security to assist you by providing an income for your later years or in instances of an unforeseen disability. Within the FRS, there are 2 very different choices.

The first is a defined benefit plan, also referred to as the pension plan. In the pension plan, after six years of creditable service, you become vested and are then eligible for future benefits depending upon your age and/or years of service. Annual benefits are calculated using the average of your 5 highest fiscal years earnings multiplied by a percentage factor (listed below) that is based on your age or years of service with the state. Thirty years of creditable service will qualify you for full benefits upon retirement, regardless of age.

(Note: If you are a law enforcement officer in the Special Risk Class, you are eligible for normal retirement when you vest and reach age 55, or when you attain 25 years of Special Risk service regardless of age. In addition, the percentage factor used in determining your retirement benefit is 3.00% for each year of service.)

The following factors apply to FRS, regular class benefits:
1.6% Age 62 or 30 years of service at time of retirement
1.63% Age 63 or 31 years of service at time of retirement
1.64% Age 64 or 32 years of service at time of retirement
1.68% Age 65 or 33 years of service at time of retirement

For more information on calculating your FRS benefits, please visit the ONLINE SERVICES link at www.frs.state.fl.us (Note: If you are using ONLINE SERVICES for the first time, your user ID is your social security number, no spaces or dashes, and your password is your month and year of birth {example—021941}. After you login, follow all prompts.)

The FRS includes provisions for retirement income, disability income, credit for wartime military service prior to state employment if employed before January 1, 1987, beneficiary options, and 3% annual cost-of-living increases. You may wish to supplement these provisions by considering the various tax-deferred annuities available through University of Central Florida payroll deduction

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Investment Plan (Defined Contribution)

Investment plan participants are vested after 1 year of service. The benefit received at retirement will be based on the employer’s contributions and investment earnings on those contributions, minus expenses. The value of your retirement can go up but it can also go down.

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To compare the plans, click here.


For general information on the investment plan, including contribution rates for the regular and special risk classes, go to www.myfrs.com or call the MyFRS Financial Guidance Line toll free at 1-866-446-9377; or TTY: 1-888-429-2160. Multi-lingual representatives are available from 9 a.m. to 8 p.m. Monday through Friday.

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ORP (Optional Retirement Program)

The SUS ORP is a defined contribution plan that provides full and immediate vesting to the participating companies on behalf of the member. All Faculty and A&P [except OPS and Adjunct] are compulsory participants in the ORP during the first 90 days of employment. If the employee fails to submit a completed enrollment form ORP-16, choosing ORP membership and a provider company during that 90-day period, and completed ORP company application, the employee will be defaulted to membership in the Florida Retirement System (FRS) Pension Plan.

The University of Central Florida contributes on behalf of the participants an amount equal to 10.42% of the participant’s bi-weekly gross salary as required by law. Participants are permitted but not required to make additional, voluntary contributions.

To enroll in the ORP, download the Optional Retirement Program (ORP) Enrollment Form (ORP-16). If you are going to make voluntary contributions, download the Salary Reduction Agreement (SRA). Remember, a completed ORP company application must accompany the ORP-16 and SRA.

As a participant of the SUS ORP, you have several options available to you regarding the distribution of your employer-funded benefits. Keep in mind that in order to receive these benefits, you must be terminated from all employment with all Florida Retirement System employers.

Currently, the following options are available:

1. A lump-sum distribution to the participant;
2. A lump-sum direct rollover distribution to an eligible retirement plan, as defined in s. 402(c)(8)(B) of the Internal Revenue Code.
3. Periodic distributions.
4. A partial lump-sum payment.
5. Such other distribution options as are provided for in the participant's optional retirement program contract.

For more information regarding these options, as well as survivor and death benefit options, contact your ORP provider.

Note: These options, as well as all of the regulations governing the administration of the SUS ORP, can be found in 121.35, F.S.

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ORP Participating Companies

The five approved participating companies (and local representatives) with which participants must invest their ORP funds are:

• AIG Retirement
  Contact: Jacquie Bletzacker, 407-375-2090

• ING
  Contact: The Gabor Agency: Eddie Corbett, 407-277-0246 or Jay Hasson, 407-658-2608

• Jefferson National
  Contact: The Gabor Agency: Eddie Corbett, 407-277-0246 or Jay Hasson, 407-658-2608

• MetLife Investors
  Contact: Don Ogg, 407-792-8264

• TIAA-CREF
  Contact: George "Sandy" Couch, 877-267-4510 ext. 5108

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FICA Alternative Plan

The Omnibus Reconciliation Act of 1990 (OBRA 90) introduced into the law IRS Section 3121(b) (7) (f). As a result, temporary employees of a government entity may deposit money into a private retirement plan instead of Social Security. Under the UCF 401(a) FICA Alternative Plan participants contribute 7.5% of their compensation to an account in their name. Enrollment in the plan is mandatory and automatic for all OPS non-students, and Adjunct Faculty. Full-time student employees, Graduate Assistants, Graduate Teaching Assistants, Graduate Research Assistants, and employees holding dual compensation positions do not currently pay Social Security taxes and will not be enrolled in the plan.

Please be advised that the FICA Alternative Plan is considered to be a “tax qualified plan” for purposes of determining your ability to make before-tax contributions to an individual retirement account (“IRA”). If your total income (or, if married and filing a joint return, the total income of you and your spouse) exceeds certain levels you may not be eligible to make before-tax contributions to an IRA due to your participation in the FICA Alternative Plan. Accordingly, you may want to seek the advice of your individual tax advisor before making IRA contributions.

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Benefits of the Plan

Contributions to the plan are made on a pre-tax basis. This is the least expensive way to save for retirement, and allows participants to accumulate a higher retirement benefit. Participants pay no taxes on their earnings or contributions in their accounts until retirement. Both UCF and participating employees permanently save the 6.2% Social Security tax. Any benefits which the participant has earned under Social Security or any other retirement plan will not be reduced by participating in this plan.

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How The Plan Works

Participation in the plan is mandatory. Eligible employees will be automatically enrolled in the plan as of their first paycheck. Once a contribution has been made to the plan, the employee will receive an Enrollment/Designation of Beneficiary form and an introduction letter from TIAA CREF, the plan Administrator. The plan is funded with TIAA CREF’s Life Cycle fund. However, employees can opt to diversify their funds among other investment options with TIAA CREF.

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Withdrawal Periods

Withdrawals from the plan may be made at the following times:

1. Termination of employment
2. Retirement
3. Age 59 1/2
4. After age 70 1/2 or retirement, if later, when the IRS requires minimum distributions be made to the participant each year
5. Participant’s total disability
6. Participant’s death

Withdrawals from your account may be made in a lump-sum cash payment (IRS 10% penalty on early withdrawals may apply) or plan balances may be rolled over to an IRA or other eligible retirement plan. No IRS penalty applies to these transfers.

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Who is the Plan Administrator?

TIAA CREF (Teachers Insurance and Annuity Association, College Retirement Equities Fund) is the recordkeeping and administrative firm that specializes in qualified retirement plans. They offer a wide range of investment products and services designed to meet specific financial needs. For more information, participants can contact TIAA CREF at 1-800-842-2776 or by accessing their website at http://www.tiaa-cref.org.

Bencor was the recordkeeping and administrative firm prior to April 13, 2007. These duties have been transferred to AIG Retirement. For account information and distribution requests prior to this date, please contact AIG Retirement at 1-800-448-2542 or visit their website at www.aigretirement.com

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DROP (Deferred Retirement Option Program)

The Deferred Retirement Option Program (DROP) allows you to retire and begin accumulating your retirement benefits, without terminating employment, for up to 60 months from the date you first reach normal retirement. While participating in DROP, your monthly retirement benefits remain in the FRS Trust Fund, earning tax-deferred interest, while you continue to work (but you do not earn additional service credit for retirement). When your DROP participation ends, you must terminate all employment with FRS employers. At that time, you will receive payment of the accumulated DROP benefits, and begin receiving your monthly retirement benefit (in the same amount as determined at retirement, plus annual cost-of-living increases). For many, this is the "best of both worlds," providing both a guaranteed lifetime benefit and a lump sum to be invested by the member after DROP ends.

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Who is eligible to join DROP?

You must be vested and eligible for normal retirement (based on your years of service or age) as a member of:
The Florida Retirement System (FRS),
The Teachers' Retirement System (TRS), or
The State and County Officers and Employees' Retirement System (SCOERS).

Note: FRS renewed members and members of the various optional retirement programs available under the FRS are not eligible to participate in DROP.

For most FRS members, normal retirement date is when you are vested and reach age 62, the age after 62 when you become vested, or when you complete 30 years of service regardless of your age, whichever occurs first (for Special Risk Class members normal retirement date is age 55 and 6 years of Special Risk Class service; 25 years of Special Risk Class service, regardless of age; or age 52 and a total of 25 years of service including Special Risk Class service and active duty wartime military service).

You may begin DROP participation in the month you reach your normal retirement date based upon your age, or in the month after the month you reach your normal retirement date based upon your years of service. For example, if you are vested and reach age 62 on May 22, your normal retirement date is May 1. However, if you reach 30 years of service in August, your normal retirement date is September 1.

If you reach your normal retirement date based on your years of service before age 57 (age 52 for Special Risk Class members) or reach your normal retirement date while holding an elected term of office, you may qualify to defer your DROP participation to a future date.

You must notify Human Resources of your election to participate in DROP and the dates you have chosen to participate in DROP no later than 12 months after you reach your normal retirement date (or after the date permitted under one of the DROP deferral exceptions).

For more information on DROP, contact Paul Newman in Human Resources Benefits Section at 407-823-2771, or view the Division of Retirement’s DROP brochure.

Because DROP does involve many variables, you are encouraged to schedule a one-on-one counseling session with the University’s Retirement Coordinator, Paul Newman. Contact the Human Resources Benefits Section at 407-823-2771, or benefits@mail.ucf.edu.

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Phased Retirement Program

As outlined in the Collective Bargaining Agreement 2004-2007 Article 24.6

24.6 Phased Retirement Program

A. Eligibility

(1) Employees who have accrued at least 6 years of creditable service in the Florida or Teachers Retirement System (FRS, TRS) or Optional Retirement Program (ORP), except those employees referenced in Article 24.6(A) (2), are eligible to participate in the Phased Retirement Program. Such eligibility shall expire on the employee’s 63rd birthday. Employees who decide to participate must provide written notice to the University of such decision prior to the expiration of their eligibility, or thereafter forfeit such eligibility. Employees who choose to participate must retire with an effective date not later than 180 days, nor less than 90 days, after they submit such written notice, except when the end of this 180 days period falls within a semester, the period may be extended to no later than the beginning of the subsequent term (semester or summer, as appropriate)

(2) Employees not eligible to participate in the Phased Retirement Program include those who have received notice of non-reappointment, layoff, or termination and those who participate in the Deferred Retirement Option Program (DROP).

(1) All participants must retire and thereby relinquish all rights to tenure as described in Article 15, Tenure, except as stated otherwise in this Article. Participants’ retirement benefits shall be determined as provided under the Florida Statutes and the rules of the Division of Retirement.

(2) Participants shall receive payment for any unused annual and sick leave to which they are entitled.

(3) Reemployment

a. Prior to reemployment, participants of the Phased Retirement Program must remain off the University payroll for 1 calendar month following the effective date of retirement in order to validate their retirement, as required by the Florida Division of Retirement. Participants must comply with the reemployment limitations that apply to the second through the twelfth month of retirement, pursuant to the provisions of either the FRS, TRS, or ORP, as appropriate.

b. Participants shall be offered reemployment, in writing, by the University under an Other Personnel Services (OPS) contract (NOTE: exceptions to this provision are described in Article 24.6(B) (13) below for one-half of the academic year, however, the University and employee may agree to less than one-half of the academic year. The written reemployment offer shall contain the text of Article 26.4(B)(3)d below.

c. Compensation during the period of reemployment shall be at a salary proportional to the participant’s salary prior to retirement, including an amount comparable to the pre-retirement employer contribution for health and life insurance and an allowance for any taxes associated with this amount. The assignment shall be scheduled within 1 semester unless the participant and the University agree otherwise, beginning with the academic year next following the date of retirement and subject to the condition outlined in Article 24.6(B)(3)a above.

(4). Leave for Illness/Injury

a. Each participant shall be credited with 5 days of leave with pay at the beginning of each full-time semester appointment. For less than full-time appointments, the leave shall be credited on a pro-rata basis with the assigned FTE. The leave is to be used in increments of not less than 4 hours when the participant is unable to perform assigned duties as a result of illness or injury of the participant or a member of the participant’s immediate family. For the purposes of this Section, immediate family shall include the participant’s spouse, mother, father, brother, sister, natural, adopted, or step child, or other relative living in the participant’s household.

b. Such leave may be accumulated; however, upon termination of the post-retirement reemployment period, the participant shall not be reimbursed for the unused leave.

(5). Personal Non-Medical Leave

a. Each participant who was on a 12 month appointment upon entering the Phased Retirement Program and whose assignment during the period of reemployment is the same as that during the 12 month appointment shall be credited with 5 days of leave with pay at the beginning of each full-time semester appointment. This leave is to be used in increments of not less than 4 hours for personal reasons unrelated to illness or injury. Except in the case of emergency, the employee shall provide at least 2 days notice of the intended leave. Approval of the dates on which the employee wishes to take such leave shall be at the discretion of the supervisor and shall be subject to the consideration of departmental and organizational scheduling.

b. Such leave shall not be accumulated, nor shall the participant be reimbursed for unused leave upon termination of the post-retirement period.

(6). Reemployment Period

a. The period of reemployment obligation shall extend over 5 consecutive academic years, beginning with the academic year next following the date of retirement. No further notice of cessation of employment is required.

b. The period of reemployment obligation shall not be shortened by the University, except under the provisions of Article 16 of the Agreement. During the period of reemployment, participants are to be treated, based on status at the point of retirement, as tenured employees or non-tenure earning employees with 5 or more years of continuous service, as appropriate, for purposes of Articles 13.2(A) and 13.2(B) of the Agreement.

(7). Declining Reemployment

A participant may decline an offer of reemployment during any academic year. Such a decision shall not extend the period of re-employment beyond the period described in Article 24.6(B)(5)b above. At the conclusion of the reemployment period, the University may, at its option, continue to reemploy participants in this program on a year-to-year basis.

(8). Salary Increases

Participants shall receive all increases guaranteed to employees in established positions, in an amount proportional to their part time appointment, and shall be eligible for non-guaranteed salary increases on the same basis as other employees.

(9). Preservation of Rights

Participants shall retain all rights, privileges, and benefits of employment, as provided in laws, rules, the USF/UFF Agreement, and University policies, subject to the conditions contained in this Article.

(10). Payroll Deductions

The UFF payroll deductions, as specified in Article 25, if applicable, shall be continued for a program participant during each re-employment period, upon request of the employee.

(11). Contracts and Grants

Nothing shall prevent the employer or the participant, consistent with law and rule, from supplementing the participant’s employment with contracts or grants.

(12). Irrevocable.

The employee’s decision to participate in the Phased Retirement Program and to resign the employee’s established position is irrevocable after the required approval document has been executed by all parties.

(13). OPS Exception

The provisions for reemployment on an OPS contract are in effect only for new Phased Retirement Program participants whose initial reemployment occurs during the 1992-93 academic year or thereafter.

C. Phased Retirement Program Information Document. The parties agree to jointly develop written information describing the current provisions of the Phased Retirement Program in this Agreement.

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Pre-Tax Investments

One way to meet long-term financial goals is to participate in tax-deferred programs—403(b) and 457 plans—which serve to supplement employer-sponsored pension plans. Because 403(b) and 457 plans are designed for long-term planning, employees should use another method to save for immediate needs. Contributions to 403(b) and 457 plans are taken via payroll deduction.

In addition to the deferrals discussed below, employees with 15 or more years of service at the university may be eligible to defer up to $3,000 more annually to their 403(b) plan for a maximum of $15,000 total lifetime. For a list of companies providing 403(b) tax-sheltered annuities please see the chart below.

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Participating 403 (b) and 403(b)(7) Companies

457 Deferred Compensation

The 457 plan is administered by the State Office of Deferred Compensation; employees interested in more information may call 1-877-299-8002 or visit their web site at www.myfloridadeferredcomp.com.

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Contribution Limits for 403(b) and 457 Pre-Tax Investment Plans

Click here to compare plans.

Because of the extensive changes in legislation governing these plans, employees should contact approved 403(b) and 457 plan providers to determine the eligibility of tax-deferral limits and enrollments in either plan. Optional Retirement Program (ORP) participants also will need to ensure they remain within the bounds of 402(g) and 415 limits. The 415 limit includes both employer and employee contributions. Employees may defer up to the maximum limits to both a 403(b) and 457 plan.

Employees enrolled in tax-deferred plans, including ORP participants, should review deductions each calendar year or when changes in salary occur to ensure they do not exceed the maximum limits allowed by the IRS. Employees should contact their provider company for assistance.

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Disability Benefits
To qualify for disability retirement under the Florida Retirement System Pension Plan, you must be totally and permanently disabled from performing any useful and efficient service as an officer or employee, and your injury or illness must have occurred before you terminated employment or joined DROP. If you are a retiree with renewed membership or are in DROP, you are not eligible for disability benefits. Disability benefits are not reduced for early retirement. Two types of disability benefits are payable:

Regular Disability

To qualify for regular disability retirement, you must complete at least 8 years of creditable service, regardless of the vesting requirements for your membership class. If approved, your option 1 annual benefit will be at least 25 percent of your Average Final Compensation. If your actual earned benefit based on your years of service would be higher than the 25 percent minimum regular disability benefit, the higher benefit amount will be paid.

In-Line-Of-Duty Disability

You are covered for in-line-of duty disability beginning on your first day of covered employment. To qualify for an ILOD disability, your disability must be caused by an injury or illness that happens in the actual performance of duties required by your job. Your minimum in-line-of-duty disability benefit will be 42% of your Average Final Compensation under Payment Option 1 [or 65% if you're in the Special Risk Class]. Your benefit will be based on your actual years of creditable service multiplied by your percentage value for regular retirement benefits if it is higher than the 42% or 65% minimum. As a member of the Regular Class, the minimum yearly benefit paid under option 1 for this type of disability is 42 percent of your AFC. If your actual earned benefit, based on your years of service, would be higher than the 42 percent minimum disability benefit, the higher benefit amount would be paid.

Investment Plan disability provisions are the same as those in the Pension Plan. If you want to and are eligible to retire because of a disability, your retirement plan participation will be transferred to the Pension Plan. You will receive benefits under the provisions of that Plan. Your Investment Plan account balance will be transferred to the Investment Plan Disability account to help fund your disability benefit.

UCF Retirement Association

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Last modified: 31 July 2008
Human Resources Webmaster