FRS Employer Electronic Newsletter

Volume 1: Issue 3

Issue Date: March 29, 2002

As part of the FRS's communication effort for the upcoming retirement plan choice opportunity, we're committed to keeping employer representatives up-to-date on what's happening during the Outreach and Choice periods for the FRS Pension Plan and FRS Investment Plan. This newsletter is another in a series to help keep you posted on what's new, key dates to remember, questions that are arising from employers and employees, and more.

Employee Kits for Group 1 Employees

We've heard through the grapevine that some Group 1 employees are not feeling any urgency to open their kits once they arrive in the mail. Just for fun, we've developed the following "warning label" that you could include in your employee publications, turn into a poster or use in any other creative way you can think of to spread the word: "Open Your Kits!"

You can download the label above for use in your publications or other creative media in .jpg or .gif formats by right-clicking on the links and choosing "Save Image As...". We appreciate your help in getting out the message.

Workshop Update

We'd like to thank those of you who have actively supported the Retirement Choice Workshops. We've heard that many employers have been proactive in helping to increase attendance at these workshops and emphasizing the importance of making an informed choice.

If you're a Group 1 employer, you can continue to help by promoting the workshops being offered in your county in April and May.

If you're a Group 2 employer, your workshops start in late April. Be sure to promote these workshops to employees as an excellent resource for information about the plan choice and the best way to get all their questions answered in person.

If you're a Group 3 employer, please be patient - your workshops are coming in September.

Health Insurance Coverage at Retirement - an Update

Under current Florida law, an employee may continue his or her health insurance coverage upon termination of employment and retirement. To be eligible for this coverage, an employee must have health insurance coverage prior to retiring and must continue the coverage at termination and retirement. Any employee who defers retirement will not be eligible for health insurance coverage unless the employer elects to provide that coverage.

Employees in the Pension Plan may continue coverage when they retire under either normal retirement or early retirement. However, each FRS employer must now decide how to offer health coverage for retirees from the Investment Plan within the broad guidelines of the current law.

Legislation has been passed recently that will provide continued retiree medical coverage under the Investment Plan for employees who work for state agencies and state universities.

The new legislation provides that a retiree who wants to continue retiree medical coverage under the Investment Plan must meet the age and service requirements of the Pension Plan (age 62 and 6 years, or 30 years of service for all employees except Special Risk; and age 55 with 6 years, or 25 years for Special Risk employees), or the retiree must have attained age 59½ and have six years of service.

This requirement applies only to state agency and university employers. All other FRS employers must make a determination of their own as to how they will offer health coverage to their retirees.

Group 2 Employers: Retirement Choice Kits Are Coming!

Employees in Group 2 (School District and Charter School employees) are scheduled to receive their Retirement Choice Kits beginning on or about April 15. At that time, you can expect that they'll be asking plenty of questions about the new retirement options. The MyFRS Financial Guidance Line is available now to answer employee questions. Also, please remind your employees in this group about the MyFRS Financial Guidance Program workshops that will be held throughout the Outreach period.

Due to the large number of kits being sent out, the mailings will be staggered over a three-week period. That means your employees who work in the same location may receive their kits at different times, because the mailings are sorted in the order of employees' Social Security numbers. These kits are being mailed to the employee's home address, as provided on the monthly payroll report you submit to the Division of Retirement. If no address has been provided, the kits will be mailed to you for distribution. If the employee's mailing address is incorrect and the kit is returned to us, it will be forwarded to you for distribution.

A general schedule for Group 2 workshops is included in each Retirement Choice Kit. Employees may sign up for any session they want, regardless of where that session is held. Employees don't need to have received their kit prior to registering for a workshop.

To find out which specific locations are hosting a workshop, to get an updated listing of workshop dates and times, or to register for a workshop, go online to MyFRS.com to the "Register for a Workshop" box in the upper left corner of the home page or select the link under the "Catch Your Wave" section also on the home page. Those who don't have online access can call the MyFRS Financial Guidance Line at 1-866-44-MyFRS (1-866-446-9377). Please note that the Workshop Registration Schedule included in the Retirement Choice Kit is subject to change. For the most up-to-date scheduling information, refer to the schedule listed on MyFRS.com.

Group 3 Employers: Be Prepared

Employees in Group 3 (including all local government employees) will begin receiving their Retirement Choice Kits in late August, and their workshops will begin in September. You may wish to take this time to make certain that you are ready by verifying that all employee home mailing addresses are correct. We would also appreciate your help in getting employees to think about this important decision through your local newsletters.

Change in Investment Fund under the FRS Investment Plan

Due to a change in its investment management team, the ING Small Company Fund (Fund S70) will not be offered at this time. Some printed pieces in the Choice Kits for Group 1 and Group 2 (Investment Fund Summary and Your Plan Choice Form) include this fund as an offering. We have updated the PDF files on the Web site to reflect that this fund is no longer available.

If you're a Group 1 or Group 2 employer and you get questions from your employees on this fund, you should direct them to the MyFRS Financial Guidance Line at 1-866-44-MyFRS (1-866-446-9377).

More Frequently Asked Questions

Here are answers to a few of the questions you might be asking:

What should I do when employees complain about not having received their Retirement Choice Kits yet?

Keep in mind that the mailing is staggered over a three-week period. What's more, the mailing is sorted according to employees' Social Security numbers, so co-workers or even spouses who both work for FRS employers in the same group may receive kits on different days. However, if a Group 2 employee hasn't received his or her kit by the end of May, have him or her call the MyFRS Financial Guidance Line.

An employee told me that the service data on his personalized statement is incorrect. What should he do?

The employee should call the MyFRS Financial Guidance Line to discuss any potential data problems. If the salary or years of service are incorrect, it will take 2 - 4 weeks for the MyFRS Financial Guidance Program to generate a new statement. Since employees have a six-month window to make a decision, this should not be a problem. Also, the data in the online CHOICE SERVICE will be updated within about one week after the correction.

Important Note: If an employee's Date of Hire is incorrect but his or her Years of Service are correct, a new statement will not be sent. The projected benefits are generated from the Years of Service, not from the Date of Hire. Also, the statement does not indicate months in the service time, but the numbers calculated on the statement do take into account the months.

Any address changes should be processed first by employers, so that the monthly payroll system will have the correct address. That information will then be processed through the system.

One of my employees asked if he had to do anything if he wasn't planning to switch to the Investment Plan. Does he?

Your employee will do himself a huge favor if he uses this choice as an opportunity to explore his personal financial situation and plan for retirement. This choice and the MyFRS Financial Guidance Program that supports it may be the best "free" financial planning opportunity many employees will ever have.

It's extremely important that all FRS employees make informed choices about their retirement benefits. We realize that the Retirement Choice Kit can be a little intimidating at first glance, and we're finding that some employees are setting it aside because they've already made up their minds. But without all the facts, an employee might make the wrong choice.

We ask that you encourage your employees to review their entire kits, even if they have many years of service with FRS employers. There's a lot they can learn about retirement planning, even if they choose to stay in the Pension Plan. Any participant who doesn't make a choice will receive a reminder notice near the end of his or her Choice period. And remember that making no choice is a choice. It means the employee stays in the current Pension Plan.

When does the transfer to the Investment Plan take effect?

An employee must be covered on at least one payroll to be successfully transferred into the Investment Plan. That means the employee must be on the payroll the first of the month following the month in which the employee makes an election. For example, a transfer for a Group 1 employee who chooses the Investment Plan on July 8, 2002 will become effective on August 1, 2002. The employee must work for at least one day in the month of August for the transfer to become effective. The earliest possible effective date for a transfer to the Investment Plan is the first day of the second month of the applicable Choice period. For Group 1 employees, this is July 1, 2002; for Group 2 employees, this is October 1, 2002; and for Group 3 employees, this is January 1, 2003.

Are part-time employees eligible to make this plan choice?

Yes, if they are employed in a regularly established position. While the retirement benefit for a part-time employee may be less than for a full-time employee, part-time employees are still eligible to make a plan choice. You should continue to encourage part-time employees to attend a workshop, call the MyFRS Financial Guidance Line and review the materials to make an educated decision.

What if an employee loses his or her PIN?

Employees can request new PINs through MyFRS.com or by calling the MyFRS Financial Guidance Line number, 1-866- 466-9377, and pressing option 5. Option 5 can also be used to make a retirement plan choice.

One of my employees complained that the military service he purchased didn't show up on his statement. How could that happen?

If a Group 1 employee hadn't fully paid for the purchased service prior to November of 2001, that service would not be shown on his or her statement. An employee must pay in full for any service purchased prior to that service showing up on the Benefit Comparison Statement or transferring to the Investment Plan. A Group 2 or 3 employee must pay in full for any additional service purchase prior to the data run date of their statement for the service to be included in the statement.

Employer Resources

You're not alone! When you need help or have questions about the plans or the choice options, we have several resources available to assist you.

The MyFRS.com Web site. Click on the Employer Services tab in the upper right hand corner of the home page to get information specifically geared toward employers.
The FRS Employer Assistance Line, toll-free at 1-866-FRS-2121 (1-866-377-2121). Representatives are available 9 a.m. - 8 p.m. (Eastern time)/8 a.m. - 7 p.m. (Central time), Monday through Friday, except holidays. Division of Retirement counselors are available 8 a.m. - 5 p.m. Eastern time, Monday through Friday, except holidays.