Issuu on Google+

APPROACHING RETIREMENT 5 Year Checklist 5 Years Prior:  Request estimate of benefits from Social Security Administration  Investigate 403(b) catch-up provisions with financial planner to maximize tax sheltered investments  Study Florida Retirement System (FRS) Retirement Guide, and other retirement related materials or pamphlets*  Tentatively decide on early retirement, normal retirement, or Deferred Retirement Option Program (DROP) participation*  Review latest FRS Member Annual statement*

3 Years Prior:  Meet with Retirement Coordinator to discuss tentative retirement plans and eligibility dates  Request FRS audit and/or DROP accumulation estimate through Retirement Coordinator*  Meet with financial planner to ensure retirement goals will be met

18 Months Prior:  Meet with Retirement Coordinator to discuss eligibility for incentive retirement benefits and/or to request incentive and terminal pay estimates  Re-visit time frame and clarify plans with Retirement Coordinator  Discuss when to sign paperwork

12 Months Prior:  Discuss whether to draw Social Security benefits at age 62 or age 65  Familiarize yourself with Medicare - eligibility begins at age 65  Locate birth certificate (proof of age) for employee and spouse, if applicable

6 Months Prior:  Contact Social Security Administration about when to apply for benefits and whether eligible to draw benefits during last working months  Tentatively decide on one of the four FRS retirement benefit payment options available to pension plan members*  Request an updated incentive and terminal pay estimate through Retirement Coordinator  Meet again with financial planner to discuss 401(a), 403(b), DROP account accumulation, incentive, and terminal pay benefits (tax issues/savings, investment options) *May not apply to Optional Retirement Program (ORP) participants or Investment Plan participants Key Contacts: Sherian Stevenson Retirement Coordinator CJI, 2nd floor, Room 213 Extension 8042 - Mail Code 3-33

Florida Retirement System Bureau of Retirement Calculations PO Box 9000 Tallahassee, FL 32315-9000 SunCom 278-6491 or 1-850-488-6491

OR Laurie Youngman Manager, Benefits and Retirement Human Resources CJI - 2nd Floor, Room 216 Extension 8116 - Mail Code 3-33

Social Security Administration 1-800-772-1213

January 2008


Normal Retirement: The Florida Retirement System (FRS) defines eligibility for normal retirement for the Regular Class member as 30 years of creditable services regardless of age, or a minimum of 6 years of creditable service and 62 years of age. Normal retirement age or date is the time you are first eligible to receive a retirement benefit without a reduction of the benefit because of your age. First eligibility for normal retirement occurs either the first of the month in which you turn 62 and have at least 6 years of creditable service, or the first of the month following the month in which you obtain 30 years of creditable service. For the purposes of the retirement incentive program, defined below, normal retirement for Optional Retirement Program (ORP) participants is defined as 62 years of age and any combination of a minimum of 6 years of service in a state of Florida retirement system plan or ORP plan defined by the state of Florida retirement system, or 30 years of service regardless of age. Early Retirement: FRS members may retire before reaching normal retirement if they have at least 6 years of creditable service but have not reached normal retirement age as described above. The retirement benefit is reduced 5% for each year under age 62. For the purposes of the retirement incentive program, defined below, ORP participants may also be eligible to receive early retirement incentive benefits. Deferred Retirement Option Program (DROP): DROP is an alternative method for payout of retirement benefits for a specified and limited period of time. Under this program, FRS members may retire and have retirement benefits deposited in a DROP account, earning tax-deferred interest, while simultaneously continuing to work for the College for up to 60 months from first normal retirement eligibility. When the DROP period ends, participants must terminate employment. Members must elect DROP participation within 12 months of reaching first normal retirement eligibility. There are exceptions for those who obtain 30 years of creditable service and are under age 57, as well as for those who have purchased optional service (i.e., refunded service, military service, etc.). This voluntary program is not available to FRS Investment Plan participants or ORP participants. Retirement Incentive Program (Policy 6Hx28:07-35): Employees who elect to retire under normal retirement, early retirement, or the DROP, may be eligible to receive benefits under this voluntary program. A full-time employee has 12 months following the date on which he/she reaches first eligibility for normal retirement to begin retirement or to elect participation in the DROP in order to receive retirement incentive benefits. The employee must also have a minimum of 7 years of service at Valencia in a regularly-established, college-funded position. FRS members may elect to include or exclude any optional service purchased from the total service used to establish the normal retirement. Employees electing early retirement may also be eligible to receive benefits under this program if they have at least 23 years of creditable service or are at least 55 years of age. These employees must also have a minimum of 7 years of service at Valencia in a regularly-established college-funded position. DROP participants are not eligible for early retirement incentive benefits. Terminal Pay (Policy 6Hx28:07-32): Terminating full-time employees may be eligible to receive payment for accumulated unused vacation leave and/or accumulated unused sick leave at the time of separation. 401(a) and 403(b) Qualified Retirement Plans (Policy 6Hx28:07-40; 6Hx28:07-41) Defined contribution plans for full-time employees. The 401(a) plan year is July 1 - June 30. The 403(b) plan year is January 1 - December 31. The purpose of these plans is to exempt terminal sick leave, terminal vacation leave, and retirement incentive payments to eligible participants from employee and employer FICA taxes and to defer employee income tax on these payments. These are mandatory plans for retiring full-time employees.


/ApproachingRetirement5yearChecklist