Department of Management Services

Retirement Benefits Administration

What is the purpose of the division?

The Division of Retirement's mission is to provide high quality, innovative and cost-effective retirement services to members and employers of the Florida Retirement System (FRS) and to monitor local government retirement systems for compliance.

How is the division organized?

The Department of Management Services' Division of Retirement is organized as follows.

The Director's Office, under the leadership of the Director of Retirement, coordinates actuarial services and pension liability reporting in ACFR and schedules, and analyzes legislation. Bureaus reporting to the Deputy Director of Member Services:

  • Bureau of Enrollment and Contributions enrolls members and employers and receives employer contributions. In Fiscal Year 2020-21, it processed 99.93% of monthly payrolls from FRS employers within five days, so that individuals' updated retirement information was quickly available. The bureau also administers the State University System Optional Retirement Program and the Senior Management Service Optional Annuity Program.
  • Bureau of Retirement Calculations computes retirement benefits, processes requests for estimated benefits, and issues annual statements. In Fiscal Year 2020-21, active members requesting a benefit calculation received an answer in an average of 11.32 business days.
  • Bureau of Benefit Payments distributes retirement benefits to retirees and survivors and coordinates Deferred Retirement Option Program payouts. In Fiscal Year 2020-21, it processed 100% of retirees' payrolls timely and added 99.88% of service retirees to the next payroll after receipt of all documents.
  • Bureau of Local Retirement Systems monitors Florida's local public retirement systems and oversees the local police and firefighter pension program.

Bureaus reporting to the Deputy Director of Technology and Support Services: 

  • Bureau of Research, Education, and Training develops FRS publications, promulgates rules, responds to public records requests, publishes the FRS Pension ACFR and GASB 67/68 Pension Liability Allocation Schedules, and trains new and current employees. 
  • Contact Center provides customer service to FRS non-retired members, retirees, beneficiaries, employers, and other stakeholders.
  • Bureau of Business Support Services coordinates the division's budget and accounting functions, provides general administrative services, and processes incoming and outgoing mail.

What are the division's main duties?

The division's primary responsibility is to administer the Florida Retirement System Pension Plan, including the Deferred Retirement Option Program (DROP). It also administers other state-administered retirement programs: the State University System Optional Retirement Program, Senior Management Service Optional Annuity Program, and the Retiree Health Insurance Subsidy Program.

The division also oversees and monitors the actuarial soundness of local government retirement systems that are not part of the Florida Retirement System, as well as pension plans for municipal police and firefighters under Chs185 and 175, Florida Statutes. In addition, the division is responsible for approving the distribution of insurance premium tax revenues to qualified municipal police officer and firefighter pension plans.

What is the Florida Retirement System?

The Legislature established the Florida Retirement System in 1970. The system provides retirement, disability, and death benefits to retirees or their designated beneficiaries and offers a wide range of information services to non-retired members. The system is funded through employer contributions, employee contributions, and investment earnings and serves government employees that fall into five employee membership classes.
  • Regular Class consists of FRS members who do not qualify for membership in any other class.
  • Special Risk Class consists of members who meet the criteria to qualify for membership in this class and are employed as law enforcement officers, firefighters, correctional officers, paramedics, emergency medical technicians, or community-based correctional probation officers. It also includes specified professional health care positions in the Department of Corrections and Department of Children and Family Services.
  • Special Risk Administrative Support Class consists of Special Risk Class members who are moved, reassigned to, or reemployed in an administrative support position with a law enforcement, firefighting, correctional, or emergency medical care agency under the FRS.
  • Senior Management Service Class consists of members in senior management level positions within state and local government agencies.
  • Elected Officers' Class consists of members who hold specified elective offices in either state or local government. State officers include the following: Governor, Lieutenant Governor, Cabinet Officer, Legislator, Supreme Court justice, district court of appeal judge, circuit judge, county court judge, state attorney, and public defender. County officers include the following: sheriff, tax collector, property appraiser, supervisor of elections, school board member, school board superintendent, clerk of circuit court, county commissioner, and other elected officials with countywide authority. City or special district officers include the following: elected officials in cities and special districts that have chosen to place their elected officials in this class instead of the Regular Class during the six-month window periods offered in 1997, 2001, 2009, or at the time of joining the FRS on or after Jan. 1, 2010.

How many people does the FRS serve?

As of June 30, 2021, the Florida Retirement System had 635,266 active members who were covered by the provisions of the system and 440,307 annuitants. These numbers represent a 1.41% decrease in membership and a 1.86% increase in annuitants. As of June 30, 2021, the Florida Retirement System also had 31,655 members participating in the Deferred Retirement Option Program (DROP).  Regular Class membership comprised 85.27%, Special Risk Class membership comprised 11.70%, and Senior Management Services Class comprised 1.24%. All other classes combined comprised of 1.77% of FRS members.

What employers participate in the FRS?

Participating employers include state and county government agencies, school boards, state universities and community colleges, and many cities and special districts. As of June 30, 2021, school district employees comprised the largest percentage of FRS members (48.1%), followed by county (23.8%) and state employees (14.9%).

What are the features of the FRS's benefit options?

Florida Retirement System members have several plan options.
  • Pension Plan. The Division of Retirement administers this retirement option. The Pension Plan is a defined benefit plan funded by employee contributions (3% of the employee's salary), employer contributions, and investment earnings. The division transfers the contributions to the State Board of Administration, which is responsible for investing FRS assets. The Pension Plan guarantees a certain level of benefit payment and FRS employers bear the risk that investment returns will not support that level of benefits. A member's retirement benefit is based on a formula taking into account factors such as salary level, years of service, compensation, and FRS membership class.
  • Investment Plan. The State Board of Administration administers this option. Members are guaranteed a certain level of contributions from their employers and must contribute 3% of their salaries to the program. Members select how to invest these funds from a list of authorized investment accounts. Members bear the risk of poor investment returns, but after meeting certain requirements can take their retirement accounts with them if they no longer work for an employer participating in the FRS. A member's retirement benefit is the amount of money accumulated in the investment account when the member chooses to receive a distribution or roll over to an eligible plan.
  • Hybrid Membership. This option allows members to participate in the Investment Plan for all future contributions and keep vested accrued Pension Plan benefits frozen in that plan. Retirement benefits are paid separately from either the Pension Plan or the Investment Plan.

What is the average annual benefit for an FRS retiree?

In Fiscal Year 2020-21, the Florida Retirement System paid $10.7 billion in annual benefits to annuitants, with the average annual benefit equaling $24,375.

How are these activities funded?

Fiscal Year: 2022-23
Fund Salary Rate/ Position General Revenue Trust Funds
SALARY RATE
POSITIONS
SALARIES AND BENEFITS
FROM GENERAL REVENUE FUND
FROM OPERATING TRUST FUND
FROM OPTIONAL RETIREMENT PROGRAM TRUST FUND
FROM POLICE AND FIREFIGHTER'S PREMIUM TAX TRUST FUND
FROM RETIREE HEALTH INSURANCE SUBSIDY TRUST FUND
OTHER PERSONAL SERVICES
FROM OPERATING TRUST FUND
FROM OPTIONAL RETIREMENT PROGRAM TRUST FUND
EXPENSES
FROM OPERATING TRUST FUND
FROM OPTIONAL RETIREMENT PROGRAM TRUST FUND
FROM POLICE AND FIREFIGHTER'S PREMIUM TAX TRUST FUND
FROM RETIREE HEALTH INSURANCE SUBSIDY TRUST FUND
OPERATING CAPITAL OUTLAY
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
ACQUISITION OF MOTOR VEHICLES
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
TRANSFER TO DIVISION OF ADMINISTRATIVE HEARINGS
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
CONTRACTED SERVICES
FROM GENERAL REVENUE FUND
FROM OPERATING TRUST FUND
FROM OPTIONAL RETIREMENT PROGRAM TRUST FUND
FROM POLICE AND FIREFIGHTER'S PREMIUM TAX TRUST FUND
FROM RETIREE HEALTH INSURANCE SUBSIDY TRUST FUND
SPECIAL CATEGORIES
OVERTIME
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
RISK MANAGEMENT INSURANCE
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
CONTRACTED LEGAL SERVICES
FROM OPERATING TRUST FUND
SPECIAL CATEGORIES
LEASE OR LEASE-PURCHASE OF EQUIPMENT
FROM OPERATING TRUST FUND
FROM POLICE AND FIREFIGHTER'S PREMIUM TAX TRUST FUND
SPECIAL CATEGORIES
TRANSFER TO DEPARTMENT OF MANAGEMENT SERVICES - HUMAN RESOURCES SERVICES PURCHASED PER STATEWIDE CONTRACT
FROM GENERAL REVENUE FUND
FROM OPERATING TRUST FUND
FROM OPTIONAL RETIREMENT PROGRAM TRUST FUND
FROM POLICE AND FIREFIGHTER'S PREMIUM TAX TRUST FUND
FROM RETIREE HEALTH INSURANCE SUBSIDY TRUST FUND
DATA PROCESSING SERVICES
NORTHWEST REGIONAL DATA CENTER (NWRDC)
FROM OPERATING TRUST FUND
PENSIONS AND BENEFITS
DISABILITY BENEFITS TO JUSTICES AND JUDGES
FROM GENERAL REVENUE FUND
PENSIONS AND BENEFITS
FLORIDA NATIONAL GUARD
FROM GENERAL REVENUE FUND
PENSIONS AND BENEFITS
STATE OFFICERS AND EMPLOYEES (NON-CONTRIBUTORY)
FROM GENERAL REVENUE FUND
TOTAL
19,059,864
27,386,070

Updates

The 2022 Legislature enacted Chapter 2022-159, Laws of Florida, which authorizes new blended rates for FRS employers and increases the employer contribution to Investment Plan members' accounts by 3% for each membership class effective July 1, 2022. The law also modifies DROP participation for eligible law enforcement officers whose positions are covered by the Special Risk Class.

Where can I find related OPPAGA reports?

A complete list of related OPPAGA reports is available on our website.

Where can I get more information?

What are the applicable statutes?

Chapters 112 (Public Officers and Employees; Retirement), 121 (Florida Retirement System), 122 (State and County Officers and Employees Retirement System), 175 (Firefighter Pensions), 185 (Municipal Police Pensions), 238 (Teachers' Retirement System), 250 (Military Affairs) and 650 (Social Security for Public Employees), Florida Statutes.

Whom do I contact for help?

Division of Retirement, 850-907-6500

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