FRS Update 2/20/2011

FRS Update 2/20/2011

February 21st, 2011 // 12:36 am @

Well it looks like it is going to be a very busy legislative session.  A new bill has been proposed by Senator Jeremy Ring on 2/15/2011.  I have attached the whole bill all 154 pages, however if you don’t want to spend hours reading the entire bill, I have listed some of the highlights from the bill below.  After reviewing it, I believe it is very similar to Governor Scott’s proposal.  I will be following this bill until the end just like the Governors Proposal.
 
1- Proposal to eliminate the Pension Plan for ALL new employees: Effective 7/1/11 (page 26: lines 727-731)
       –  What this means is that all employees hired AFTER 7/1/2011 will only have the option to participate in the FRS Investment Plan.

2- Employees will make contributions into their FRS Investment Plan:  Effective 7/1/11 (page 134: lines 3975-3986)
       – From my reading, I believe this would only affect NEW employees (hired after 7/1/11).
       – It has not been stated what percent of employees would contribute yet.

3- Increase the full retirement age for new employees from 62 to 65 (page 72: lines 2062-2073).

 
4- This bill does not end the ability for qualified FRS pension employees to enter DROP.

As you can see, Senator Ring’s bill looks like it will mostly only impact NEW employees.

 

My advice is that if you think that these changes could impact your decision on when to retire or when to enter DROP, PLEASE email me ASAP to schedule a time to meet and discuss.  We want to make EDUCATED decisions to make sure you have to best retirement possible. 

 

If you know anyone who would benefit from my FRS updates please forward my email on to them OR send me their name and email address and I will add them to my email list.

 
 

Thanks,

Gary Cucchi
Agency Owner, Horace Mann Ins.
DBA: Florida Educator Ins., LLC
Now with two locations
-Wesley Chapel: Ph: 813.600.3268   Fx: 813.600.5348
-St. Petersburg: Ph: 727.576.5555   Fx: 727.576.5560
www.garycucchi.com
 
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