Health Insurance Subsidy (HIS)
July 1, 2023 – Senate Bill 7024 – Increased the FRS Health Insurance Subsidy (HIS) from $5.00 to $7.50 for every creditable year of FRS service if you have health or dental insurance. The maximum monthly benefit is adjusted from $150 to $225 and the minimum monthly benefit is adjusted from $30 to $45, effective July 1, 2023.
Volunteering
July 1, 2023 – House Bill 1121 (Chapter No. 2023-316, Laws of Florida) – This bill amends the definition of termination in s. 121.021(39), Florida Statutes, for clarity and provides authority for FRS employers to establish a post-employment volunteer program that allows retirees to provide civic, charitable, and humanitarian services during the first 12 calendar months following retirement without causing the retiree to violate the termination requirements. These volunteer programs must meet specified criteria. A definition of “volunteer services” is also created in s. 121.021(65), Florida Statutes.
Deferred Retirement Option Program (DROP) Participation
July 1, 2023 – Senate Bill 7024 – Eligible members in a regularly established position can elect to participate in DROP for no longer than 96 calendar months beginning any time after their normal retirement date. The provision replaces individual member eligibility windows for electing DROP participation.
July 1, 2023 – Senate Bill 121.053(7), F.S – DROP Accounts will accrue at an effective annual rate of 4%, compounded monthly on the prior month’s accumulated ending balance, up to the month of termination or death.
Investment Plan Updates
May 24, 2023 – Senate Bill 110 (Chapter No.2023-111, Laws of Florida) – Clarifies that the benefits cannot be paid to a member of the Investment Plan who has been charged with or convicted of specific offenses; and permits a waiver of the requirement that a member of the Investment Plan who wishes to designate a non-spouse as their beneficiary receive an acknowledgement of that designation from the spouse.
June 15, 2017 – The Florida legislature passed Senate bill #7022 – FRS Investment plan retirees re-hired after July 1, 2010 at an FRS agency, are re-enrolled in the FRS Investment plan. Pension Plan retirees are are exempt from this provision.
Re-employment Restrictions
You are considered “retired” from the Florida Retirement System (FRS) if:
- You have received any benefits under the FRS Pension Plan (including *DROP), or
- You have taken any distribution (including a rollover) from the FRS **Investment Plan, including withdrawal of only your employee contributions, the FRS will consider you to be retired.
- Pension Plan retirees (including DROP) the retirement is always effective the first of the month following the separation from the Agency.
July 1, 2024 – House Bill 151 (Section 121.021 (39), Florida Statutes. Amends the re-employment after retirement provisions, by allowing retirees to be re-employed with an FRS employer and receive both compensation and retirement benefits after meeting the termination requirements (6 calendar months after date of termination). This change eliminates the “suspension of benefits” period currently applied during 7 to 12 calendar months after the date of termination.
*Rehired retirees of the FRS Pension and DROP plan are not eligible for renewed membership in any state of Florida retirement plan. ** Upon returning to work, retirees of the FRS Investment plan may reenroll in the plan for the second time.
Cost of living
This is applicable to FRS Pension Plan retirees only. If a retiree retired prior to July 1, 2011 will receive a 3% COLA each July 1. For Pension Plan retirees retired after July 1, 2011, the COLA is based on the following formula: Service earned prior to July 2011 divided by total years of service at the time of retirement or DROP multiplied by 3%. Members who only have service on or after July 2011 will not receive a COLA.
