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Glossary |
C
Calendar Month
One of the 12 divisions of a year as determined by the Gregorian calendar (e.g., January, April, etc.).
Choice
An employee's selection of one of two retirement plan options offered by the FRS (with eligibility based on date of hire): the FRS Pension Plan or the FRS Investment Plan. Also called Election. See also "Second Election".
Choice Period
The period of time following your hire date in which you can choose to participate in either the FRS Investment Plan or the FRS Pension Plan. You have until the last business day of the 5th month following the month of your hire to make this choice.
Closed Retirement Systems
The separate state-administered retirement systems that existed before the Florida Retirement System was created on December 1, 1970, and have since been closed to new members (also called "Existing Systems"). These systems were consolidated under the Florida Retirement System by chapter 121 of the Florida Statutes, and include the State and County Officers and Employees' Retirement System, the Teachers' Retirement System, the Highway Patrol Pension System and the Judicial Retirement System established by chapters 122, 238, 321, and 123, Florida Statutes, respectively.
Compensation
Regular payment of salary by your employer to you for work performed, including certain overtime payments. By law, certain fees, bonuses, and other amounts are not considered "compensation" under the Florida Retirement System. (See s. 121.021(22) and (47), Florida Statutes, or see subsection (16) of rule 60S-6.001, Florida Administrative Code, for details.)
Contribution
The retirement contributions paid by employers on behalf of the employee. The 2002 legislative session resulted in a new method for paying contributions by employers, called a "blended contribution rate". Under this law, employers will pay the same contribution rate for each employee regardless of whether he or she is in the Pension Plan or the Investment Plan.
Contribution Rate
The percentage of compensation required to fund your promised Florida Retirement System benefits (through employer contributions). This rate varies, depending on your membership class and other factors.
Core Funds
Investment funds that invest in a very broad portion of an asset class and can help you form the "core" of your portfolio.
Cost-of-Living Adjustment or COLA
An annual increase in your Florida Retirement System Pension Plan retirement benefit (currently 3 percent) paid to you after you retire. The increase is implemented each July 1, and is intended to help offset the effects of inflation. Your first cost-of-living adjustment may be less than 3 percent, as it will be prorated if you have not been retired for 12 months.
Covered Employment or Covered Position
Employment in a regularly established position with an employer participating in the Florida Retirement System or in a state-administered retirement system.
Creditable Service
Service for which you earn retirement credit by being paid for work in a regularly established position with an employer participating in the Florida Retirement System, as well as any additional service for which you may purchase retirement credit.
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