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a turn-key retirement experience


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Understanding what you are doing and why, gives you the peace of mind to confidently execute your retirement plan. BENCOR Retirement Consultants

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BENCOR


BENCOR

About BENCOR


Congratulations BENCOR would like to congratulate you on your upcoming retirement and D.R.O.P. Exit. We know how exciting and scary this experience can be all at the same time. BENCOR is here to help you every step of the way with professional guidance, investment advice, expertise on topics such as the Florida Retirement System, the D.R.O.P. Exit Process, Social Security, Retirement Forms, Sick Leave, and the Health Insurance Subsidy. BENCOR believes that a one-on-one trusted and personalized relationship is among the most important of issues to our clients.

BENCOR is here to help you every step of the way with professional guidance and sound investment advice.

Our Retirement Consultants and staff make it a point to be accessible and approachable to ensure that you have an insightful, pressure and stress-free environment as we help you embark down the road to retirement. Again, we congratulate you, ďżź ďżź Hugh B. Bishop Co-Founder/CEO

R.M. Taylor III Co-Founder

DISCLAIMER: BENCOR is not endorsed, affiliated with, or a subsidiary of the Florida Retirement System. Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC. 6187 Carpinteria Ave, Carpinteria, CA 93013, (800) 874-6910. BENCOR and PlanMember Securities Corporation are independently owned and operated. PlanMember is not responsible or liable for ancillary products or services offered by BENCOR.

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a turn-key retirement experience


Welcome to BENCOR BENCOR is a turnkey retirement planning agency specializing in retirement for employees that retire from the Florida Retirement System. For the past 28+ years, the Retirement Consultants at BENCOR have been servicing Florida retirees, helping them to

What should you expect?

enjoy a successful retirement. With over 100 years of combined

Your BENCOR Retirement Consultant will begin with the basics helping to educate you along the way. If you don’t understand what you are doing and why, you will never have the level of comfort that gives you peace of mind to confidently execute your retirement plan. Your Retirement Consultant will have at-length discussions with you about everything from A to Z. Some of these topics include your estimated retirement income and how protected it is, legacy planning and monthly budgeting.

experience, our Retirement Consultants have helped over 5,000 clients go through this process, from start to finish. Since you only want to experience retirement once, BENCOR wants you to know that you don’t have to walk this road alone. Take full advantage of our local Retirement Consultants and have peace of mind that while this may be your first time, we help our clients go through this process every day.

Representative is registered with and offers only securities and advisory services through PlanMember Securities Corporation, a registered broker/ dealer, investment advisor and member FINRA/SIPC. 6187 Carpinteria Ave., Carpinteria, CA 93013, (800) 874-6910. BENCOR and PlanMember Securities Corporation are independently owned and operated. PlanMember is not responsible or liable for ancillary products or services offered by BENCOR.

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A Decidedly Different Approach With BENCOR, planning is not just setting up an account for your retirement dollars, and it is not just a 1-800 number either. It is a face-to-face process that requires thoughtful consideration of your current circumstances and long-term goals to create a personalized retirement plan. This takes time and is not accomplished overnight. You will meet with your BENCOR Retirement Consultant multiple times before major investment decisions are made. Our main focus is RISK MANAGEMENT. Determining your risk tolerance, but more importantly your NEED for risk is your Retirement Consultant’s number 1 goal.

We believe that taking an appropriate portion of your retirement nest egg and safe guarding it with guarantees should be, without a doubt, your number 1 objective.

We will strive to create a retirement plan with a foundation based on guarantees, again providing peace of mind, just as your FRS Pension and Social Security plans have provided. When you can have a successful retirement based on return OF your money as opposed to return ON your money, why put that opportunity at risk? We believe that taking an appropriate portion of your retirement nest egg and safe guarding it with guarantees should be, without a doubt, your number 1 objective. BENCOR makes no guarantee of the FRS Pension and Social Security Plans. Guarantees are backed by the financial strength and claims-paying ability of the Insurance Company or entity providing them. The tax-deferred feature of an annuity should not be a factor in purchasing an annuity in a tax-qualified plan. Tax deferral is provided by the plan and the tax-deferral of the annuity does not provide any additional benefit. Annuities are subject to additional fees and expenses to which other taxqualified funding vehicles may not be subject. Individuals should only purchase an annuity in a qualified plan when its other benefits, such as lifetime income payments, family protection through death benefits, and/or guaranteed fees meet their current needs.

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Retiree Checklist

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Meet with your local BENCOR Retirement Consultant regarding any questions you have about the retirement process, to review current accounts and establish proper accounts to accept your D.R.O.P. ROLLOVER if necessary. Meet with a representative of the Insurance Department regarding continuing retirees’ insurance. It may be necessary to submit enrollment paperwork prior to your last day of work in order to prevent any lapse or delay in coverage. Complete Termination Notification (DP-TERM) for the Division of Retirement. You will receive this form from the Division of Retirement. Your Employee Benefits Department will need to complete the form for you to sign and have notarized. See sample form on page 12.

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Complete the Selected Payout Method (DP-PAYT) form and submit to the Division of Retirement. If you select the Direct Rollover or Partial Lump Sum option, you must have this form completed by your BENCOR financial Retirement Consultant. See sample form on page 13.

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30 Days After Retirement: Complete Withholding Certificate for Pension Payments (Form W-4P). You will receive this form after submission of the completed DP-TERM and DP-PAYT forms above. See sample form on page 18.

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30 Days After Retirement: Complete Health Insurance Subsidy Certification (HIS-1) form. You will receive this form after submission of the completed DP-TERM and DP-PAYT forms above. See sample form on page 19.

3

30 Days After Retirement: Complete Direct Deposit Authorization (EFT) form. You will receive this form after submission of the completed DP-TERM and DP-PAYT forms above. See sample form on page 20.

3 If eligible, apply for Social Security Benefits at www.ssa.gov or at your local Social Security office.

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19 Locations Throughout Florida To meet with a BENCOR Retirement Consultant and discuss your retirement planning, contact the office nearest you.

12 SANTA ROSA

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TALLAHASSEE JACKSONVILLE

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Tallahassee Office TALLAHASSEE 1407 Piedmont Drive | Suite C Tallahassee, Florida 32312 Toll Free Call: 1.855.599.2300

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Jacksonville Office 1650 Prudential Drive | Suite 100 Jacksonville, Florida 32207 Toll Free Call: 1.855.599.2300

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Orlando Office - Orange County 1245 West Fairbanks Avenue | 2nd Floor Winter Park, Florida 32789 Toll Free Call: 1.855.599.2300

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Marion County Office 1805 SE 16th Avenue | Suite 901 Ocala, FL 34471 Local Call: 352.586.2219

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Orlando Office - Seminole County 1052 Willa Springs Drive Winter Springs, FL 32708 Toll Free Call: 1.800.330.4014

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Santa Rosa Office 1312 East Cervantes Street Pensacola, FL 32501 Toll Free Call: 1.866.429.9817

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Space Coast Office 982 Brevard Avenue | Suite 2 Rockledge, Florida 32955 Toll Free Call: 1.855.599.2300

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Volusia County Office 505 Canal Street New Smyrna Beach, FL 32169 Toll Free Call: 1.888.323.6267

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Naples Office 2640 Golden Gate Parkway | Suite 202 Naples, Florida 34105 Toll Free Call: 1.855.599.2300

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Osceola County Office 1950 E. Irlo Bronson Memorial Hwy Kissimmee, Florida 34744 Local Call: 407.960.4494

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Sarasota Office 2 N. Tamiami Trail | Suite 602 Sarasota, Florida 34236 Toll Free Call: 1.855.599.2300

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Lake County Office 2110 North Donnelly Street Mt. Dora, Florida 32727 Local Call: 1.352.586.2219

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Fort Lauderdale Office 10 Fairway Drive | Suite 300 Deerfield Beach, FL 33441 Toll Free Call: 1.866.425.0665

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Indian River Office 601 21st Street | Suite 300 Vero Beach, Florida 32960 Local Call: 1.772.453.2745

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Defuniak Springs Office 1299 US Hwy 90W Defuniak Springs, Florida 32433 Toll Free Call: 1.866.892.9922

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Key Largo Office 198 Atlantic Blvd. Key Largo, FL 33037 Toll Free Call: 1.800.327.7888

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Fort Walton Beach Office 8A Brooks Avenue Fort Walton Beach, Florida 32547 Local Call: 850.862.5511

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Pinellas County Office 13123 66th Street Largo, Florida 33773 Local Call: 727.530.3030

Fort Myers Office 2675 Winkler Avenue | #400 Ft. Myers, FL 33901 Local Call: 239.283.8884

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ORLANDO

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VERO BEACH

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NAPLES FORT LAUDERDALE

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Additional Questions? Contact the BENCOR Coordinator at 1.800.330.4014 – Ask for Gena Flores.


Timeline


Timeline

A Timeline To Your Retirement


Pension Options: A Quick Review The Florida Retirement System allows for you to select 1 of 4 options that determines how your Pension check will provide a benefit to your beneficiary.

You will select your option BEFORE your D.R.O.P. START date or your NORMAL RETIREMENT date if you decide not to enter D.R.O.P. This is a one-time irrevocable decision and can not be changed once selected. All 4 options will provide a benefit for your entire life; however, you will want to determine whether or not a continuation of benefit to a beneficiary is a need for your family.

Source: www.myfrs.com <http://www.myfrs.com>

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Your Four Pension Options OPTION 1 is the basic monthly benefit and will provide you, GET SMART TIP

the retiree, with the maximum monthly benefit you will be eligible to receive. The benefit will stop at your death. Options 2, 3, and 4 are less than the Option 1 amount and are designed to provide a

OPTION 1 VS. OPTION 3

Taking a benefit other than Option 1 means that you are essentially purchasing a form of insurance on your pension. However you cannot drop this insurance if your plans change because it is a onetime irrevocable decision. So what happens if your spouse pre-deceases you? You are now stuck paying for an insurance benefit that is never redeemable. For this reason, many people explore the option of life insurance as an alternative. Consult an BENCOR Retirement Consultant about your options before making this decision.

continuing benefit to a beneficiary or joint annuitant.

OPTION 2 is a reduced monthly benefit payable for your lifetime. If you die within a period of ten years from your retirement date or D.R.O.P. begin date, your designated beneficiary will receive the same monthly benefit you were receiving until the monthly benefits payable to both you and the beneficiary equal the balance of the ten year period. If you die after that ten year period, there is no continuing benefit to the beneficiary. The amount of reduction of Option 2 depends on your age only. Option 2 would be particularly appropriate if you are in ill health and your beneficiary does not qualify as a joint annuitant. Anyone can be named as a beneficiary under Option 2, as well as charities, organizations, or your estate or trust.

OPTION 3 is a reduced monthly benefit payable for your lifetime. Upon your death, your joint annuitant, if living, will receive the same monthly benefit you were receiving. No further benefits are payable after both you and your joint annuitant are deceased.

OPTION 4 is an adjusted monthly benefit payable to you while both you and your joint annuitant are living. Upon the death of either you or your joint annuitant, the monthly benefit payable to the survivor is reduced to two-thirds of the monthly benefit received when both were living. No further benefits are payable after both you and your joint annuitant are deceased.

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Source: www.myfrs.com <http://www.myfrs.com>


What Is The D.R.O.P. Program? The Deferred Retirement Option Program (D.R.O.P.) is offered for vested members who have reached their normal retirement date either due to age or years of service. While participating in D.R.O.P., your monthly retirement benefit (i.e., pension check) accumulates each month in the FRS Trust Fund, earning tax deferred interest, while you continue to work and earn a salary. Because your monthly retirement benefit must be calculated upon entering D.R.O.P., and your D.R.O.P. account accumulates as a direct result of your monthly retirement check being deferred, you are not able to earn additional Service Credit (Years of Service) while in the D.R.O.P. Program. For most D.R.O.P. participants, the maximum participation period is 60 months (5 years); however, D.R.O.P. is a month-tomonth program and you can leave whenever you choose. The choice is yours. Some exceptions do apply.

For most D.R.O.P. participants, the maximum participation period is 60 months (5 years); however, some exceptions do apply.

Upon the completion of your D.R.O.P. period, you must terminate all employment with all FRS employers or forfeit your D.R.O.P. benefits.

Source: www.myfrs.com <http://www.myfrs.com>

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90 Days Before Your Last Day In D.R.O.P.

90

90 days before your last day in D.R.O.P., you will receive a packet from the Florida Retirement System.

STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES

DIVISION OF RETIREMENT POST OFFICE BOX 3090 TALLAHASSEE, FL 32315-3090

IN THIS ENVELOPE WILL BE TWO VERY IMPORTANT FORMS:

DP-TERM FORM

This form will verify your D.R.O.P. termination date and require your notarized signature in addition to the signature of your employer. This form will notify the state that your pension check should now come to you, and no longer be deposited in the FRS Trust Fund because you have now completed your D.R.O.P. term. (See Sample. Copy of DP-TERM Form on Page 12)

DP-PAYT FORM

This form will require your selection of a payout method for your D.R.O.P. money and will need to be SIGNED IN FRONT OF A NOTARY. Depending on your payout election, this form will need to be sent to and signed by the custodian (company you would like to rollover your DROP Money to) and then sent to the state. (See Sample. Copy of DP-PAYT Form on Page 13)

On this form you will find 3 options:

CAUTION!!! You have 60 days from your termination date to make a decision. If you do nothing, the default selection is a LUMP SUM Distribution, which means TAXES, TAXES and MORE TAXES!!!! 10

1. LUMP SUM PAYOUT

This is a fully taxable distribution and will result in all of your money being sent to you. The FRS will withhold 20% for taxes and send it to the IRS on your behalf, but this is only a withholding. YOU ARE STILL RESPONSIBLE FOR ANY ADDITIONAL TAX LIABILITY GENERATED BY THIS DISTRIBUTION COME TAX TIME. For this reason, very few people choose this option.

2. DIRECT ROLLOVER

This is the most commonly selected option among retirees. This option allows you to rollover the money to another Qualified (PRE-TAX) Investment and defer federal income tax until you withdrawl the money. BENCOR suggests that you make sure that you initially use an account that you have access to in case your needs happen to change. You can never have too much flexibility when it comes to access to your money.

3. PARTIAL LUMP-SUM

This option will send you a portion of your money in a lump-sum, and the rest can be rolled over to another Qualified (PRE-TAX) Investment deferring the federal income tax on the rolled over portion until you withdrawl it. ďżź


A Proven Approach - Let The Dust Settle NOT SURE WHAT TO DO? Adding your D.R.O.P. dollars to your BENCOR account may bring you closer to reaching your retirement goal. You will likely be contacted by many investment companies/individuals who push you to purchase an annuity, an IRA, or some other investment vehicle outside of your BENCOR account. Now that you are about to receive a large lump sum of cash, everyone wants to be your “friend”. Do not feel obligated or pressured to buy a product or account when you can use a very valuable asset that you ALREADY have.

DID YOU KNOW? Your employer sponsored BENCOR FICA Alternative and SPECIAL PAY PLAN is something you already own and is eligible to receive your D.R.O.P. Rollover, even if you don’t currently have an account balance. It is a great way to satisfy the 60-day requirement of the state, and it will give you time to receive your first pension check, perhaps a first Social Security check, and simply experience retirement both emotionally and financially. Then, once you have had time to take a vacation, relax, and enjoy retirement for a few months, schedule an appointment with a BENCOR Retirement Consultant to make decisions as to what your needs will be in retirement. Not based on how retirement MIGHT BE, but based on how retirement HAS BEEN thus far, and what your needs will be in the future. Because your employer provided the BENCOR account and it was mandatory for your special pay, there are some special features you may be interested in. See below. What are some other reasons that I should use my BENCOR Account? 1. N  O RISK! - The Guaranteed Pooled Fund offers guaranteed principal and interest on all deposits, including your D.R.O.P. rollover, 403(b)/457(b) rollovers, 401(k) rollovers, and IRA rollovers. 2. NO FEES! - The Guaranteed Pooled Fund does not have any fees or charges for ANY transaction as long as you maintain a $1,000 account balance. 3. N  O RESTRICTIONS! - You have 100% access to your money by way of direct deposit or lump sum as soon you have separated from service. (Internal Revenue Code age-based restrictions do apply.) 4. INCOME! - If you rollover your D.R.O.P. dollars to your BENCOR account and need to bridge an income gap in retirement, we’ve got you covered. BENCOR can send you monthly checks by direct deposit. If you discover you need more or less income down the road, your BENCOR account gives you the flexibility to change your withdrawal amounts whenever you want. Just let us know how much you need. Ready? Here’s what you need to do… 1. Complete the DP-PAYT form by checking the box indicating that you would like to rollover ALL or PART of your D.R.O.P. dollars and sign the form IN FRONT OF A NOTARY. (DO NOT COMPLETE THE BOTTOM SECTION. THIS IS FOR BENCOR TO COMPLETE.) 2. F ill out the fax cover sheet located in the back pocket of this booklet, follow the instructions and fax your form to the number provided. Not comfortable with the fax process? That’s okay. Call us directly and a representative will make arrangements to meet with you one on one. 3. TAKE A DEEP BREATH AND RELAX! We will send you a completed copy of your DP-PAYT form, notify you when your money is safely in the account, and track your transaction along the way. At this point, a large weight will have been lifted off your shoulders. If you rolled over your D.R.O.P. dollars to your BENCOR account to bridge the income gap in retirement, but discover you need more income down the road, your BENCOR account offers you the freedom to make changes later free of charges. It’s really that simple. Prior to making your final decision about your D.R.O.P. dollars, you may want to discuss the options available with your BENCOR Retirement Consultant whose telephone number is listed on the back cover of this booklet. The Guaranteed Pooled Fund is a pooled separate account offered through Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY 10528, which provides the guarantee of principal and interest. TFLIC’s claims paying ratings are: Standard & Poor’s: AA-: (Very Strong); Moody’s: A1: (Good); A.M. Best: A+ (Superior) www.bencorplans.com | 11


Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Termination Notification

DP-TERM Rev. 04/10

Retired Payroll

PO BOX 3090 Tallahassee, FL 32315-3090 (850) 487-4856 Toll Free; 1-877-738-3767 FAX (850) 410-2199

Member Verification Member Name: ______________________________________

Member SSN

Mailing Address ______________________________________

Home Telephone ____________________________

____________________________

______________________________________

According to our records, your DROP termination date is __________. You must terminate your DROP employment to receive your accumulated DROP benefits and begin your monthly retirement benefits. You and your employerâ&#x20AC;&#x2122;s authorized representative must complete this form certifying your DROP employment termination. By signing this form you are acknowledging having read the termination requirements and re-employment limitations below.

1. If your DROP termination date is on or before June 30, 2010; Your termination requirement means you cannot remain employed or become re-employed with any Florida Retirement System (FRS) covered employer during the FIRST calendar month following your DROP termination date. This includes but is not limited to; part-time work, temporary work, other personal services (OPS), substitute teaching or non-Division approved contractual services. During the 2-12th calendar months following your DROP termination date, you may return to work for a participating FRS employer but must suspend your monthly retirement benefit for any of these month you are employed unless the position you hold is eligible for a reemployment exception. After the 12th calendar month following your DROP termination date, there are no more reemployment limitations. 2.

E L

PUSE

If your DROP termination date is on or after July 1, 2010; Your termination requirement means you cannot remain employed or become re-employed with any Florida Retirement System (FRS) covered employer during the first six calendar months following your DROP termination date. This includes but is not limited to: part-time work, temporary work, other personal services (OPS), substitute teaching or non-Division approved contractual services. During the 7th-12th calendar months following your DROP termination date, you may return to work for a participating FRS employer but must suspend your retirement benefit for any of these months you are employed. There are no reemployment exceptions during the reemployment limitation period. After the 12th calendar month following your DROP termination date, there are no reemployment limitations.

T M O N O

A D S

If you fail to meet termination requirements noted above, you will void (cancel) your retirement and DROP participation, you must repay all retirement benefits received including your DROP accumulation, and you must apply to establish a future retirement date. If you void your retirement, your employer will be responsible for making retroactive retirement contributions and you will be awarded service credit for the period during which you were in DROP through your new termination date. Your eligibility for DROP participation will be terminated by your future retirement date and you may lose your eligibility to participate in DROP. This is to acknowledge that I will terminate or have terminated employment with my FRS employer on ________________________________. This further acknowledges that you have read and understand the above statements. (Date) Member Signature: (Sign in the presence of a Notary) ____________________________________________________________________ Notary: State of _____________ County of ____________________ The above named person has sworn to and subscribed before me this _______ day of __________________ 20 ___ and who is personally known ______ or produced ___________________ as identification. _______________________________________________

_________________________________________________________

Signature of Notary Public

Print, Type or Stamp commissioned name of Notary Public

Employer Certification of Employment Termination: This is to certify that the DROP participation for the above named member will terminate or had terminated on __________________________________ with the Agency who I am authorized to represent.

(Date)

Authorized Signature: ____________________________________________ Position Title: _____________________________________ Print Name: ____________________________________________________ Phone Number: __________________________________ Agency Name: __________________________________________________ Agency #: _______________ Date: ___________________ 12


Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Selected Payout Method

DP-PAYT Rev. 03/10

Retired Payroll

PO BOX 3090 Tallahassee, FL 32315-3090 (850) 487-4856 Toll Free; 1-877-738-3767 FAX (850) 410-2199

Member Name: ______________________________________

Member SSN _______________________________

Payee Name:

Payee SSN

______________________________________

_______________________________

This form serves as an affirmation of your selected payout method for your DROP accumulation as provided in 121.091, Florida Statutes. The method of payout may have tax implications. Before making your payout election, please read the enclosed Special Tax Notice. You may want to consult a tax professional regarding tax implications.

DROP BALANCE PAYOUT METHOD

If you are subject to a Required Minimum Distribution (RMD), or made “after tax” contributions. Those amounts will be paid directly to you as a required lump sum payment. Upon receiving this completed form, your payment will be processed in the calendar month following your termination date. Your DROP BENEFIT is based on your selected DROP termination date of: ________________

E L

Gross DROP Balance RMD After Tax Contributions *Tax Calculation: $_________ (20% non-RMD amounts) $_________ (10% RMD amounts) My Lump Sum Payment

A lump sum election means the FRS will mail the DROP payment directly to you at the address on file, minus the required federal withholding taxes.

A direct rollover election means the FRS will mail the eligible DROP rollover portion of your balance directly to your selected plan and the lump sum balance will be mailed directly to you at the address on file. The receiving financial institution’s representative / custodian must complete the rollover section below. If you choose to roll over into a ROTH account, the taxation will default to 0% unless you selected either of the following amounts: _____________ 10% _____________ 20%

A partial lump sum option: Please add the additional amount I noted to my required gross Additional Lump lump sum payment and reduce the DROP rollover accordingly. I understand that the Sum Amount additional lump sum amount will be taxed.

Required Gross Lump Sum Payment (RMD and After-Tax Contributions) $___________ Eligible Gross DROP Rollover $___________

PUSE

T M O N O

A D S

$___________ $___________ $___________ $___________

$___________

By signing this form, I attest having read the Special Tax Notice and authorize the FRS to release my DROP payments accordingly. PAYEE’s SIGNATURE ______________________________________________________________

(Must be signed in the presence of a Notary Public)

__________________________ Date

Notary: State of _____________________, County of ____________________. The above named person has sworn to and subscribed before me this ____________ day of _________________ 20 _______ and who is personally known _______ or produced ______________________________________________ as identification. ______________________________________________________ ___________________________________________________ Signature of Notary Public Print or Stamp Notary Public’s Commission Name and Number This Section is for ROLLOVERS, and must be filled out by a REPRESENTATIVE of the ELIGIBLE PLAN or IRA Please select the type of account rollover is being deposited in (as defined in s. 402(c)(8)(B) of the Internal Revenue Code) and provide the address where the check should be mailed (Upon receiving this completed form, a payment will be processed in the calendar month following the member’s termination date noted above. Incomplete forms will be returned to the member and delay the payment process.

Individual Retirement Account / Annuity (IRA) as described in s. 408(a) and 408 (b), Internal Revenue Code Traditional Non-designated ROTH (taxation will default to 0% unless a different election was made above)

Qualified Plan, a stock bonus pension, or profit sharing plan of an employer as described in s. 401(a), 401(k), Internal Revenue Code

Deferred Compensation Plan as described in s. 457(b), Internal Revenue Code

An Annuity as described in s. 403(a) or 403(b), Internal Revenue Code

Payable To: _________________________________________ Account #_______________________ Phone ____________________ Financial Institution (optional) Mail Payment to Address _______________________________________ Representative _______________________________________________ _______________________________________ Print Name www.bencorplans.com | 13


30 Days AFTER Your Exit Date YOUR FIRST PENSION CHECK ARRIVES If your first day retired is the first day of a month, the Florida Retirement System will issue your first pension check at the end of that month. All of the required documentation must be received on time for your application to be approved and your check to be processed for that monthâ&#x20AC;&#x2122;s payroll. The FRS processes payroll on the 25th of each month. Checks will be mailed and received the first week of the next month or no later than the 5th day of the next month. Keep in mind that this means that you COULD HAVE NO PAYCHECK for the first month you are retired. BENCOR encourages you to make sure that you have made accommodations to prepare for this period of time.

Your 1st pension check will not be the same as your 2nd or your 3rd. So be prepared to see varying amounts for these first few deposits. The reasons for the varying amounts are as follows:

1.

There is a Health Insurance Subsidy payment (H.I.S.) that you may be eligible to receive.

Even though you may be eligible to receive a H.I.S. payment with your pension check, the first check will not include a Health Insurance Subsidy (H.I.S.) payment, because you must complete additional paperwork to receive it. If you fill out the proper forms in a timely manner, the Health Insurance Subsidy will be included in your 2nd pension check. In actuality, your 2nd pension check will include two H.I.S. payments, one that you were owed for your first check (a retro payment) and the one you are owed for your second check. Your 3rd pension check and each additional check will include the correct amount. See page 17 for additional information on when you will receive the necessary forms and how the H.I.S. payment is calculated.

2.

The Default Tax Withholding from your pension check.

The Default Tax Withholding applied to your first pension check will remain constant unless you change it. It will have a default withholding for tax purposes of married with 3 dependents. While some retirees may be married, not many have 3 dependents to claim. This could result in you owing additional money at tax time. The Florida Retirement System gives you the opportunity to change this withholding to better suit your tax bracket. See the explanation and sample forms on the next few pages of this brochure and contact your BENCOR Retirement Consultant if you have additional questions.

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You COULD HAVE NO PAYCHECK for the first month you are retired. BENCOR encourages you to make sure that you have made accommodations to prepare for this period of time.

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After Your First Pension Check A WEEK AFTER YOUR 1ST PENSION CHECK ARRIVES

W-4P FORM This form will allow you to change your withholdings for tax purposes. The default for all FRS retirees is married with 3 dependents. Since a majority of retirees do not have 3 dependents, there is generally not enough tax withheld from your first pension check to offset the tax liability

You will receive a SECOND Packet from the Florida Retirement System that looks exactly the same as the first.

at tax time. As a result, many retirees will owe additional taxes come tax time. This form will allow you to modify your withholdings to better suit your tax situation.

See Image below.

In this packet will be 3 important forms. You will want to get these forms back to the FRS ASAP so that your next Pension Check will be updated with the changes.

RIDA STATE OF FLO NT SERVICES MANAGEME

T OF DEPARTMEN

MENT OF RETIRE DIVISION OFFI CE BOX 3090 POST 90 , FL 32315-30 TALLAHASSEE

ent Benefits FRS Retirem TO: SMITH JOHN DOE EET T MAIN STR 120120 WES 00 FL 00000-00 SARASOTA,

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See full size sample form on page 18


H.I.S. FORM

DIRECT DEPOSIT FORM

Health Insurance Subsidy Form will be the

Your first check was mailed to you; however, the

notification to the FRS that you have proof of

FRS now requires you to set up direct deposit as

insurance and qualify for $5 for each year of

they will not continue to mail you your monthly

service that you had prior to your D.R.O.P. entry.

pension check. You should complete this form

Once this form is submitted, you will then begin

with the bank account information for the

receiving these dollars included in your pension

account that you would prefer your check to be

check. Because you are owed an H.I.S. payment

direct deposited into. If completed in a timely

for your first check, after submission of this

manner, your second check will be directly

form, your next check will include 2 months of

deposited in the account that you indicated.

Health Insurance Subsidy, a retro payment for the first pension check and a payment for the current month.

See full size sample form on page 20

See full size sample form on page 19

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Worksheet


Worksheet

Your Retirement Worksheet


IMPORTANT Please complete the following Personal Analysis and Personal Budget worksheets prior to attending your BENCOR retirement workshop or meeting with your BENCOR Retirement Consultant.

Thank You

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Your Personal Analysis GENERAL INFORMATION IMPORTANT DATES Name DOB Address DOB - Spouse City D.R.O.P. Exit Zip Code Retirement Phone - Home / Cell Re-Hire Email Employer Ending Salary $

RETIREMENT ASSETS D.R.O.P. FRS Pension

$ Circle option taken

1

2

3

4

FRS Investment Plan IRA Mortgage

$ $

Traditional Roth

Amount Owed: Interest rate

Personal Savings

$ ___________ % __________ Circle type

CD

Real Estate / Rental Income Social Security Age 403(b)/457(b) Tax Sheltered Annuity Deferred Compensation Plan

Estimated Value: $ Savings

Checking

$ $

Monthly Annually

$

Fixed Variable

$

Other (Inheritance, Securities, Mutual Funds) 22

$

$


Your Personal Budget

ESSENTIAL

OPTIONAL

HOUSING

Mortgage or Rent Property Taxes & Insurance Utilities Household Improvements Household Maintenance

$ _________ $ _________ $ _________ $ _________ $ _________

$ _________ $ _________ $ _________ $ _________ $ _________

FOOD

At Home Dining Out

$ _________ $ _________

$ _________ $ _________

TRANSPORTATION      

Vehicle Purchase/Payment Auto Insurance & Taxes Fuel Maintenance Public Transportation

$ _________ $ _________ $ _________ $ _________ $ _________

$ _________ $ _________ $ _________ $ _________ $ _________

HEALTH CARE    

Health Insurance Medicare/Medigap Co-Pays/Uncovered Medical Services Drugs & Medical Supplies Fitness Center Membership

$ _________ $ _________ $ _________ $ _________

$ _________ $ _________ $ _________ $ _________

PERSONAL INSURANCE

Life Long-Term Care

$ _________ $ _________

$ _________ $ _________

PERSONAL CARE

Clothing Products & Services

$ _________ $ _________

$ _________ $ _________

OTHER          

Entertainment Travel Hobbies Family Care/Education Income Taxes Charitable Contributions Other _________________________

$ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________

$ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________

SUBTOTAL

$ _________

$ _________

TOTAL ESTIMATED MONTHLY EXPENSES

$ _________

$ _________

COMPARE EXPENSES AND SOURCES OF INCOME, AND MAKE AN INCOME PLAN WITH YOUR BENCOR RETIREMENT CONSULTANT TO COVER ANY GAPS. www.bencorplans.com | 23


Notes

24


a turn-key retirement experience

To meet with an Bencor Retirement Consultant and discuss your retirement planning, contact the office nearest you. Tallahassee Office 1407 Piedmont Drive | Suite C Tallahassee, Florida 32312 Toll Free Call: 1.855.599.2300

Sarasota Office 2 N. Tamiami Trail | Suite 602 Sarasota, Florida 34236 Toll Free Call: 1.855.599.2300

Volusia County Office 505 Canal Street New Smyrna Beach, FL 32169 Toll Free Call: 1.888.323.6267

Jacksonville Office 1650 Prudential Drive | Suite 100 Jacksonville, Florida 32207 Toll Free Call: 1.855.599.2300

Fort Lauderdale Office 10 Fairway Drive | Suite 300 Deerfield Beach, FL 33441 Toll Free Call: 1.866.425.0665

Osceola County Office 1950 E. Irlo Bronson Memorial Hwy Kissimmee, Florida 34744 Local Call: 407.960.4494

Orlando Office - Orange County 1245 West Fairbanks Avenue | 2nd Floor Winter Park, Florida 32789 Toll Free Call: 1.855.599.2300

Key Largo Office 198 Atlantic Blvd. Key Largo, FL 33037 Toll Free Call: 1.800.327.7888

Lake County Office 2110 North Donnelly Street Mt. Dora, Florida 32727 Local Call: 1.352.586.2219

Orlando Office - Seminole County 1052 Willa Springs Drive Winter Springs, FL 32708 Toll Free Call: 1.800.330.4014

Fort Myers Office 2675 Winkler Avenue | #400 Ft. Myers, FL 33901 Local Call: 239.283.8884

Indian River Office 601 21st Street | Suite 300 Vero Beach, Florida 32960 Local Call: 1.772.453.2745

Space Coast Office 982 Brevard Avenue | Suite 2 Rockledge, Florida 32955 Toll Free Call: 1.855.599.2300

Marion County Office 1805 SE 16th Avenue | Suite 901 Ocala, FL 34471 Local Call: 352.586.2219

Fort Walton Beach Office 8A Brooks Avenue Fort Walton Beach, Florida 32547 Local Call: 850.862.5511

Naples Office 2640 Golden Gate Parkway | Suite 202 Naples, Florida 34105 Toll Free Call: 1.855.599.2300

Santa Rosa Office 1312 East Cervantes Street Pensacola, FL 32501 Toll Free Call: 1.866.429.9817

Defuniak Springs Office 1299 US Hwy 90W Defuniak Springs, Florida 32433 Toll Free Call: 1.866.892.9922

www.bencorplans.com DISCLAIMER: BENCOR is not endorsed, affiliated with, or a subsidiary of the Florida Retirement System.

a turn-key retirement experience

Bencor | A Turnkey Retirement Experience