|FRS Pension Plan (Blended Rate)||FRS Investment Plan|
Contributions are deposited into the Pension Plan trust fund, according to the following table.
It's important to note that the total contributions submitted by you and your employer do not affect your retirement benefit. Your retirement benefit is set by a formula that does not include the contribution rate paid by you and your employer.
Employee contributions of 3% are required of all Pension Plan and Investment Plan members, except those in DROP who are not required to pay employee contributions. Employee contributions are deposited in the FRS trust fund, along with any contributions you may have paid for a leave of absence or other type of service for which you may have paid contributions.
All employee and employer contributions go into a single trust fund to pay benefits for all FRS Pension Plan participants.
Contribution percentage amounts are subject to change each year based on legislative law changes, investment experience and the actuarial experience of the trust fund. However, the rise and fall of the contribution percentages does not affect your accrued retirement benefit, which is guaranteed by law.
Your employer also contributes additional amounts each month to fund the Health Insurance Subsidy benefit (1.66%), plan administrative and educational expenses (0.06%), and unfunded actuarial liability funding as required by law. The employer rates above include these contributions.
The contribution rates below are deposited monthly into your Investment Plan account.
These contributions go into your Investment Plan account and do affect your benefit being the primary funding for your account balance, particularly earlier in your career. The longer you're in the Investment Plan the more important investment earnings become, relative to contributions.
Contribution rates are fixed by law and the Florida Legislature can increase or decrease the amount that you and your employer contribute to your account.
Your employer also contributes additional amounts each month to fund the Health Insurance Subsidy benefit (1.66%), the Investment Plan disability program (contribution varies depending on membership class from 0.25% to 1.33%), and plan administrative, educational expenses (0.06%), and unfunded actuarial liability funding as required by law.