FRS Employer Electronic Newsletter


Volume 2: Issue 1

Issue Date: March 5, 2003

 

As part of our communication effort for the retirement plan choice opportunity, we're committed to keeping participating FRS employers up-to-date on what's happening in the FRS Pension Plan and FRS Investment Plan. This newsletter is part of an ongoing series to keep you posted.

It includes the following sections:

IMPORTANT CHANGES AND REMINDERS

Employee Workshops

The MyFRS Financial Guidance Program is sponsoring a series of financial planning workshops designed to help employees get started with retirement and investment planning. Our thanks to those Group 1 and Group 2 employers who have called to host these workshops at their locations.

With the Group 3 Choice Period ending, employers in Group 3 may now request these workshops. If you would like to host a workshop in your location, please contact Ernst & Young representative Maura Fagan at 1-502-244-8441

We urge you to encourage your employees to attend one (or more) of these valuable -- and free -- workshops, which will be taught by experienced and objective Ernst & Young financial planners. Remember, Ernst & Young does not sell investment or insurance products -- so you know your employees are getting independent financial education from a reliable source.

Attached is the tentative workshop schedule for March. You may notice that some locations are still left to be determined. For the most up-to-date schedule, please check the schedules posted on MyFRS.com home page under the "Employee Workshops" link in the "Other Headlines" box.

Changing Your PIN

We've made it even easier for employees to change their MyFRS.com Personal Identification Number (PIN). They can choose one of the following ways to change their PIN or get a PIN reminder:

  1. If they're on the MyFRS.com home page:
    • Click on the "Need Help Logging In?" link to get a PIN reminder mailed to their home address; or
    • Click on the "Change My PIN" link in the left navigation box under Main Features to get a PIN reminder mailed to their home address. If they have their PIN, they can log in and change their PIN.

  2. If they have already logged in using their Social Security number and PIN:
    • Click on the "My Profile" button on the main toolbar at the top of the page;
    • Click on the "Change My PIN" link in the "My Profile" callout on the lower left side of the home page; or
    • Click on their name (found in the upper left-hand corner).

Each of the paths under #2 above will take your employees to the Update Your Profile Information page, which will let them change their PIN. They must type in their Social Security number and current PIN where indicated, and choose their new PIN. They'll need to make sure it's a PIN they'll remember, and that it's at least 6 characters in length. They'll need to enter it twice to be sure there was no mistake. They must use numbers only -- the system doesn't accept letters. Once they click "Save" at the bottom, they're done.

We've also added this information on the MyFRS.com home page.

New Hire Kits and Resources Are Ready

The wait is over! New hire materials -- including a New Employee Brochure (to be distributed at your new employee orientations) and New Hire Video, along with a sample updated Retirement Choice Kit (to be mailed to new employees home addresses within 2 months of their hire date) -- are now available. Each Retirement Coordinator will be mailed a complete set of the new hire materials by March 14, 2003. If you haven't received your sample package by March 28, please contact the FRS Plan Choice Administrator, CitiStreet, by calling the Employer Assistance Line at 1-866-377-2121 and selecting option 3.

To obtain a supply of New Hire Brochures or New Hire Videos for use in your new hire orientations, order them online through MyFRS.com or via telephone from the MyFRS Employer Assistance Line.

Keeping Addresses Current

Please remind your employees to keep their mailing address current at all times. Many of our newsletters and other correspondence with employees is sent to their home mailing address as reported on your monthly payroll. If the address you report is incorrect, correspondence from us may not arrive in a timely manner or at all.

You might also encourage your employees to register their email address on MyFRS.com, so they may receive articles, notices and publications that relate to the FRS and retirement and financial planning via their email address.

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SPOTLIGHT ON...

Some Awards for Group 2 Employers

It's that time again! A handful of Group 2 employers who have been working especially hard promoting the MyFRS Financial Guidance Program and helping arrange the Retirement Choice Workshops have been rewarded.

The following people have received Sharper Image E-Awards Points, which can be redeemed through the special MyFRS Financial Guidance Program Awards Program Web page on sharperimage.com for some pretty exciting prizes:

  • Gail Jerrell, Alachua County School Board
  • Marla Hayes, Panhandle Area Educational Consortium
  • Ernie Camerino, Palm Beach County School Board
  • Tonya Howell, Dixie County School Board
  • Alex Macri, Broward County School Board
  • Janet Werner, Pinellas County School Board
  • Todd Gutman, Pasco County School Board
  • Pat Dunnington, Duval County School Board
  • Lynn Allen, Brevard County School Board
  • Alice West, St. Lucie County School District
  • Judith Margulies-Simon, Miami-Dade County School District

If you're a winner, you were notified via email on February 26th about how many points you can redeem and how to collect your prize.

Keep in mind that this is an ongoing promotion, so those of you who are helping promote the program to Group 3 employees could be receiving prizes in the future!

FRS Retiree Newsletter

Attached for your information is a copy of the January issue of the FRS Retiree Newsletter that was recently mailed to all Pension Plan retirees. If you have questions about any issue in the newsletter, please contact the Division of Retirement.

New Employee Election Deadlines

Newly hired employees participate automatically in the FRS Pension Plan on their date of hire and have until the last business day of the 5th month after the month of hire to make an election to change to the Investment Plan or if eligible, the Hybrid Option.

Once an employee makes an election during their Choice Period, it becomes binding at 4:00 p.m. on the date it is processed by the Plan Choice Administrator, CitiStreet. If an election is made at the end of a month during the Choice Period, we will accept plan elections as follows:

  1. If the election is made by using the paper Choice Form, we will take all forms received by the Plan Choice Administrator in the mail through 4:00 p.m. Eastern on the last business day of the month.
  2. If the election is made using the phone by calling the MyFRS Financial Guidance Line and connecting to the Plan Choice Administrator, CitiStreet, we will take all elections through 4:00 p.m. Eastern on the last business day of the month.
  3. If the election is made using the online election process found at MyFRS.com, we will take all elections made through 4:00 p.m. Eastern time on the last business day of the month.

Please note that only participants in the Regular or Special Risk membership classes may use the phone and online choice methods. All others, including those enrolled in the Elected Officers Class, Senior Management Service Class, and State University System Optional Retirement Program, must use the paper Choice Form found at MyFRS.com under the Forms tab on the main menu.

Any newly hired employees who have not made a plan election prior to the beginning of the fifth month after the month of hire will receive a plan choice reminder letter at their home address informing them that their Choice Period is coming to a close. This reminder letter will include their PIN and choice deadline date.

Employees who don't make an election during this Choice Period will remain in the Pension Plan.

After the Choice Period, each employee will have one additional opportunity to change plans at any time during his/her FRS career.

Florida Retirement System Credit For Military Leaves of Absence

During the employer update workshops we recently held, we were often asked about how employers and employees should handle military leaves of absence. We hope the following summary helps in your understanding:

Reporting of Supplemental Pay

Chapter 115, F.S., permits all public agencies to provide supplemental pay to employees who are reservists called to active military service. "Reservists" includes members of the National Guard.

  • Appropriate retirement contributions based on the employee's membership class must be submitted to the Division of Retirement on any salary (full or supplemental) made to employees during any period of military leave. The salary payments and retirement contributions should be reported on the monthly retirement report, using the employee's regular work period code.
  • Appropriate retirement contributions based on the employee's membership class must be submitted to the Division of Retirement on any salary (full or supplemental) made to employees during any period of military leave. The salary payments and retirement contributions should be reported on the monthly retirement report, using the employee's regular work period code.
  • Retroactive supplemental pay should be reported as prior period adjustments using the applicable payroll month(s), to ensure proper service credit. The prior period adjustment code will be an "E". The only documentation necessary is a statement that the payment represents retroactive supplemental pay for an employee on military leave.

Retirement Credit For Military Leaves

Section 121.111, F.S., complies with the Veterans Reemployment Rights Act, as superceded by the Uniform Services Employment and Reemployment Act (USERA), and requires the employer to pay all employer retirement contributions due for an employee who is eligible to claim a military leave of absence. If the leave occurred during an employee contributory period of FRS employment, and the employee wishes to claim the leave, the employee will be required to pay any employee contributions due.

  • To claim such leave for up to 5 years of active military duty, the employee must have been filling a regularly established position immediately prior to the leave and have left the position for the purpose of induction or entry into the Armed Forces of the United States. The employee must apply for reemployment with the same employer and within the time set (14 days if military service was more than 30 days and less than 181 days, and 90 days if military service was for more than 180 days) by the USERA. The USERA requires that all benefits be restored to the employee. As such, retirement contributions are required to be paid on the employee's monthly rate of compensation prior to entering the military service.
  • The employer must notify the Division of Retirement (Information Request Form, FR-9 and copy of military papers) when the employee returns to work and has satisfied the requirements of the USERA.
  • The Division of Retirement will then notify the employer (and employee, if applicable) of the retirement contributions and interest due, based on the employee's rate of monthly compensation prior to the military leave, less any contributions already paid on any supplemental salary paid to the employee. The contribution rate will be the rate in effect for each month of service credit claimed for the employee's membership class prior to the leave. Employees in the Investment Plan will be credited with the contributions due, plus 6.5% interest. No market gains or losse s of earnings will be provided. Contributions submitted for an employee who is a member of the State University System Optional Retirement Program or the State Senior Management Optional Annuity Program will be distributed as provided in sections 121.35 and 121.055, F.S.
  • Employees who become disabled while on active military duty may be entitled to regular disability benefits from the Florida Retirement System if they meet all other requirements for such disability.
  • If a Pension Plan participant dies while on active military duty, his or her eligible survivors may be entitled to survivor benefits under the FRS. If an Investment Plan participant dies, his or her eligible survivors may be entitled to benefits based on the participants' Investment Plan account balance and length of service.
  • Questions concerning the reporting of contributions due on supplemental payments may be directed to Dan Beard, Bureau of Enrollment and Contributions, at Suncom 278-6011 or (850) 488-6011.
  • Questions concerning the contributions due upon an employees' return to work may be directed to the Bureau of Retirement Calculations, at Suncom 278-6491 or (850) 488-6491.

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ARTICLES AND IDEAS TO SHARE

Attached is an article you can use to encourage employees to use the Advisor Service. This article tells the story of a sample (composite, not real) FRS employee and how she uses the Advisor Service to get advice on her husband's 401(k) plan account, as well as her own retirement planning efforts.

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EMPLOYER RESOURCES

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 corner of the home page to get information specifically geared toward employers. If you're a state agency employer who needs access to a list of your employees who have joined the Investment Plan, you will receive a monthly report from COPES containing this information.
  • The FRS Employer Assistance Line, toll-free at 1-866-FRS-2121 (1-866-377-2121). Representatives are available 9 a.m. to 8 p.m. (Eastern time)/8 a.m. to 7 p.m. (Central time), Monday through Friday, except holidays. Remember, this telephone number is for employers only! Employees should call the MyFRS Financial Guidance Line at 1-866-44-MyFRS (1-866-446-9377).

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