RETIREMENT BENEFITS



Recent Announcements


Florida Retirement System (FRS)

The FRS is an employee and employer contributory retirement plan. The rules surrounding FRS including the contribution rates are determined by the Florida Legislature and are reviewed yearly. One of the requirements of the State is that all full time and part time regular employees must participate in the FRS. Additional information regarding FRS can be viewed at www.myfrs.com.

Effective July 1, 2011, employees began contributing 3% of their gross monthly salary on a pre-tax basis. The employer also contributes an amount equal to the gross monthly salary multiplied by the corresponding employer rate (please see contribution rates). Employee contributions are vested immediately and the employer contributions have a vesting period. The vesting period may vary depending on what plan you enroll in and when you enrolled.

The FRS offers two types of retirement plans to its members: pension plan and investment plan. Click here to Compare both plans.

FRS Pension Plan - is a defined benefit plan designed for long term service employees. Vesting requirements vary depending on when you enrolled in the plan. Investments are directed by the State and it is not portable if you should leave FRS employment. At retirement, the pension plan pays a guaranteed lifetime monthly benefit based on a formula using age at retirement, years of FRS service and Average Final Compensation.

FRS Investment Plan - is a defined contribution plan designed for a more mobile workforce. It carries a one year vesting requirement, contributions are self directed and funds are portable if you should leave FRS employment. Employees must elect to take the investment plan within the first five months of the date of hire.


FRS Enrollment

Full time and part time regular employees are automatically enrolled in the FRS Pension Plan. If employees want to remain in the Pension Plan, no additional paperwork is required. If employees choose to elect the Investment Plan within their five (5) month new hire election period, an Election Form (ELE-1) must be completed.

The Election Form may be downloaded from www.myfrs.com or you may request the form from Human Resources. The ELE-1 form must be completed and submitted to FRS on or before 4:00 pm on the last business day of the 5th month following your month of hire. Regardless of the plan elected, employees have a one-time 2nd Election where they can change plans during their FRS career. Information about 2nd election may be accessed at www.myfrs.com.

FRS will mail a confirmation statement to the employee’s address of record once the ELE-1 form is completed and processed. It may take 2-3 weeks to receive the confirmation.



State Community College System Optional Retirement Plan (CCORP)

The CCORP is a defined contribution plan in which both eligible employees and employers contribute. Administrators and faculty are eligible to participate in the CCORP. Eligible employees must enroll within 90 days from the date of their appointment or they will automatically be enrolled in the Florida Retirement System (FRS) Pension Plan.

CCORP enrollment is complete when a contract has been issued by a CCORP provider company and when the proper State of Florida enrollment forms have been submitted to the Division of Retirement. Participants must withdraw from the FRS in order to participate in the CCORP.

Participants who enroll in the CCORP are immediately vested in both the employee and employer contributions. Contributions are self directed and funds are portable should you separate from the College.


CCORP Enrollment

Please contact the Coordinator, Benefits & Training at (239)489-9391. A participant is required to establish a contract with one of the annuity providers listed below before submitting an Optional Retirement Program Enrollment Form (OCC-1) to the Coordinator, Benefits & Training. A detailed list of authorized vendors is below.


CCORP Authorized Providers

VALIC Retirement – (800) 448-2542
Chelly Bielecki – (239) 728-4333
www.valic.com

ING Financial Partners – (877) 884-5050
Aaron Cheesman – (800) 330-6115 ext 1227
www.ing.com

MetLife – (800) 763-2838
Diana Frantz – (239) 822 6858
www.metlife.com
TIAA-CREF – (800) 842-2252
www.tiaa-cref.org


Tax Sheltered Account Programs – 403(b) & 457(b)

Statistics show that human life expectancy has risen and therefore we should be prepared to spend at least 20 or more years in retirement. Living longer in retirement will ultimately lead to increased income needs, and current studies indicate that we should plan to maintain up to 70% of our pre-retirement income. A personal retirement savings plan can greatly supplement our retirement income.

Florida SouthWestern State College offers two supplemental retirement saving plan options:


403(b)

A 403(b) Plan is a tax-deferred, employer-sponsored retirement savings plan for educational institutions and certain nonprofit organizations. Employer-sponsored 403(b) plans allow participants to contribute pretax dollars into a retirement savings account, then withdraw funds when they retire, permitting account earnings to grow on a tax-deferred basis. Florida SouthWestern State College will match the contributions of eligible employees up to 3%.

Plan administrative services for the Florida SouthWestern State College 403(b) Plan are provided by:

TSA Consulting Group (TSACG)
28 Ferry Rd., SE
Ft. Walton Beach, FL 32548
Toll-free: 1-888-796-3786
Toll-free fax: 1-866-741-0645
TSACG Website


403(b) Eligibility

All regularly scheduled Florida SouthWestern State College employees, with the exception of private contractors and student workers, are eligible to participate in the 403(b) Plan immediately upon employment. Participating employees make voluntary elective deferrals to the 403(b) Plan.


403(b) Employee Contribution

Upon enrollment, participants designate a portion of their salary to their 403(b) account up to their maximum annual contribution amount. The contribution amount the employee elects is declared on a Salary Reduction Agreement (SRA) form that they complete during the enrollment process. The contribution is made on a pre-tax basis reducing the participant’s taxable income.

All contributions made by the employee and the College are immediately owned by the employee. There is no vesting requirement. Participants choose where they invest their contributions from a variety of investment products available through authorized investment providers. Participants may start, stop, or change the amount of their contributions to their account subject to the plan provisions and payroll deadlines.

Participants are responsible for determining which, if any, investment products best serve their retirement objectives. The employee’s 403(b) Plan assets are invested solely in accordance with the participant’s instructions.

For contribution limits, please visit the TSA Consulting group Contribution Guidelines website page at: Contribution Guidelines


Changes or Stopping Contributions

A new SRA form must be completed any time that you wish to:

  • Change your product provider
  • Change the allocation between providers
  • Change the amount of contribution
  • Stop your deduction or restart your deduction after a stop

Remember that all SRA forms must be submitted to the Florida SouthWestern State College Payroll Office by the cutoff date for the payroll for which you wish the change to be effective.


Employer Matching

For full-time regular employees, the College matches the employee contribution up to 3% of the employee’s annual salary.

Faculty and part-time employees may participate in the 403(b) plan, but are not eligible for the 3% employer match.

All contributions made by the employee and the College are immediately owned by the employee. There is no vesting requirement.


403(b) Authorized Providers

Employees who wish to enroll in the 403(b) plan must first select the provider and investment product best suited for their 403(b) account. The authorized 403(b) investment providers below have been approved by TSACG. For more information on the investment products and services available from these providers, please contact them directly.

VALIC Retirement – (800) 448-2542
Chelly Bielecki (239) 728-4333
www.valic.com

ING Financial Partners – (877) 884-5050
Burton Holt (239) 470-1785
www.ing.com

AXA Equitable – (866) 294-3522
Jim Reddington (239) 560-4618
www.axa-equitable.com

The Legend Group – (888) 883-6710
Antonio Fernandez-Salvador (239) 738-3638
https://www3.legendgroup.com/

American Century – (800)345-3533
Tim Gillin (800)345-3533 x 48164
www.americancentury.com

Lincoln Investments – (800) 242-1421
Larry Stults (215)881-4585
www.lincolninvestment.com

Aspire Financial 403(b) ASP – (866) 634-5873
Craig Stahl – (727)253-6351
www.403bplan.info

TIAA-CREF – (800) 842-2252
www.tiaa-cref.org

The Hartford – (860) 547-5000
Robin Orndoff (860)843-4602
www.thehartford.com

Mutual funds may be purchased through: Fidelity Investments, Aspire Financial, American Century, Lincoln and The Legend Group.

This list does not reflect any opinion as to the financial strength or quality of product or service for any company. Employees should contact a local representative to obtain specific information on products available.


403(b) Enrollment Procedure

To enroll:

1. Select the investment company and investment product best suited to your needs.

2. Establish an account with that company by completing the vendor’s account application.

3. Complete a Salary Reduction Agreement (SRA) form, which authorizes your employer to withhold the amount you elect to contribute to your 403(b) via payroll deduction. The Florida SouthWestern State College Payroll Department will forward the contribution to the investment company on your behalf.

4. Bring the completed SRA form and a completed 403(b) Product Disclosure form (provided to you by your investment provider), to the Payroll Office at Florida SouthWestern State College.

Important: You MUST establish an account with your selected provider prior to the date you begin the Salary Reduction. If the account has not been properly established, your contributions will be returned to you and will be taxable. Verifying that account has been established before submitting the SRA will expedite the process and help to avoid having funds returned to you.


403(b) Forms

Distribution transactions may include any of the following: loans, transfers, rollovers, exchanges, hardships or distributions. Participants may request these distributions by completing the necessary forms obtained from the investment provider and plan administrator as required. All completed forms should be submitted to the plan administrator, TSACG, for processing. A Transaction Routing Request form will be required for all distribution type transactions.



457(b)

To help you pursue your financial goals, Florida SouthWestern State College sponsors a 457(b) program. The Florida SouthWestern State College 457(b) Plan is a valuable retirement savings option for its employees. Participation in the 457(b) plan can be a key element in your retirement-saving strategy.

A 457(b) Plan is a tax-deferred, employer-sponsored retirement savings plan for eligible employees of governmental and tax-exempt employers.

Employer-sponsored 457(b) plans allow participants to contribute pretax dollars into a retirement savings account, then withdraw funds when they retire (usually at retirement you will be in a lower tax bracket).

Plan administrative services for the Florida SouthWestern State College 457(b) Plan are provided by:

TSA Consulting Group (TSACG).
28 Ferry Rd., SE
Ft. Walton Beach, FL 32548
Toll-free: 1-888-796-3786
Toll-free fax: 1-866-741-0645
TSACG Website


457(b) Eligibility and Employer Matching

All regularly scheduled Florida SouthWestern State College employees, with the exception of private contractors and student workers, are eligible to participate in the 457(b) Plan immediately upon employment. Participating employees make voluntary elective deferrals to the 457(b) Plan.


457(b) Employee Contributions

Upon enrollment, participants designate a portion of their salary to contribute to their 457(b) account up to their maximum annual contribution amount. The contribution amount the employee elects is declared on a 457(b) Plan Purchase and Participation Agreement form that they complete during the enrollment process. The contribution is made on a pre-tax basis reducing the participant’s taxable income.

All contributions made by the employee are immediately owned by the employee. There is no vesting requirement. Participants choose where they invest their contributions from select investment products available through authorized investment providers. Participants may start, stop, or change the amount of their contributions to their account subject to the plan provisions and payroll deadlines.

Participants are responsible for determining which, if any, investment products best serve their retirement objectives. The employee’s 457(b) Plan assets are invested solely in accordance with the participant’s instructions.

For contribution limits, please visit the TSA Consulting group Contribution Guidelines website page at: TSACG Contribution Guidelines


Changes or Stopping Contributions

A new 457(b) Plan Purchase and Participation Agreement form must be completed any time that you wish to:

  • Change your product provider
  • Change the allocation between providers
  • Change the amount of contribution
  • Stop your deduction or restart your deduction after a stop

Remember that this form must be submitted to the Florida SouthWestern State College Payroll Office by the cutoff date for the payroll for which you wish the change to be effective.


Employer Matching

There is no employer match for the 457(b) plan.


457(b) Authorized Providers

The following authorized providers have been approved by Florida SouthWestern State College for the 457(b) plan (Fixed and Variable Annuity).

VALIC Retirement – (800) 448-2542
Jim Reddington (239) 472-9416
www.valic.com

ING Financial Partners – (877) 884-5050
Burton Holt (239) 470-1785
www.ing.com

457(b) Enrollment Procedures

To enroll:

1. Select the investment company and investment product best suited to your needs.

2. Establish an account with that company by completing the vendor’s account application.

3. Complete a 457(b) Plan Purchase and Participation form, which authorizes your employer to withhold the amount you elect to contribute to your 457(b) via payroll deduction. The Florida SouthWestern State College Payroll Department will forward the contribution to the investment company on your behalf.

4. Bring the completed form and a completed 457(b) Product Disclosure form (provided to you by your investment provider), to the Payroll Office at Florida SouthWestern State College.

Important: You MUST establish an account with your selected provider prior to the date you begin the Salary Reduction. If the account has not been properly established, your contributions will be returned to you and will be taxable. Verifying that account has been established before submitting the SRA will expedite the process and help to avoid having funds returned to you.


457(b) Forms


Plan Distribution Transactions

Distribution transactions may include any of the following: loans, transfers, rollovers, exchanges, hardships or distributions. Participants may request these distributions by completing the necessary forms obtained from the investment provider and plan administrator as required. All completed forms should be submitted to the plan administrator, TSACG, for processing. A Transaction Routing Request form will be required for all distribution type transactions.



Retirement Options to Consider

Deferred Retirement Option Program (DROP)
The DROP plan allows regular full-time and part-time employees who are enrolled in the Pension Plan to retire at normal retirement, and continue to work for up to an additional five years. Retirement distributions are placed into a DROP account until the DROP end date. For additional DROP information refer to Procedure 05-0604 of the College Operating Procedures.

Health Insurance Subsidy
The Health Insurance Subsidy is only available to members of the Florida Retirement System. Retired members of FRS will receive a monthly benefit for the payment of health insurance premiums. The benefit amount equals $5.00 per month for each year of creditable service.

Retirement Incentive Plan
This is an Florida SouthWestern State College elective retirement benefit designed for employees who want to retire within six months of normal retirement (age 62 or 30 years of service). Eligible employees must provide one year notice prior to retirement. Benefits include a bonus, additional sick leave payout and payment of half of the employee's health and life insurance premiums for up to 36 months after retirement. For additional information refer to Procedure 05-0603 of the College Operating Procedures.

401 (a) Bencor Terminal Pay Plan
The College has implemented a terminal pay plan for employees who are terminating, retiring or entering into DROP and have accumulated a large sick leave and/or annual leave payout. The Bencor representative for the College is Michael Stephenson and he can be reached at (239)283-8884 or you can pick up brochures in Human Resources.