FAQs
As a new employee, you must choose one of three retirement plans available to eligible State University System employees:
- State University System Optional Retirement Program (SUSORP)
- FRS Investment Plan
- FRS Pension Plan
All three plans are funded by you and your employer and offer important benefits. You need to choose the one that’s best for you.
Some Differences between Plans.
SUSORP
- Who Is Eligible?
Faculty, Administrative and Professional (A&P), and University President and Executive Service employees. - Plan Type
A retirement plan designed for a more mobile workforce (qualified under IRC Section 403[b]). - Vesting
You qualify for a benefit immediately upon signing a contract. - Contributions
Your employer contributes 5.14% of your gross salary and you contribute a mandatory 3% pretax contribution (deducted from your paycheck) for a total contribution of 8.14%. You have the option to make additional pretax contributions of up to 5.14% of your gross salary. The employee and employer rates are subject to change by the Florida Legislature. - Your Benefit
Your benefit depends on the amount of money contributed to your account and its growth over time. You decide how to allocate the money in your account among the available investment funds.
FRS Investment Plan
- Who Is Eligible?
Faculty, Administrative and Professional (A&P), University President and Executive Service, and support employees (USPS). - Plan Type
A retirement plan designed for a more mobile workforce. - Vesting
You qualify for a benefit after 1 year of service. - Contributions
Your employer contributes 3.3% of your gross salary and you contribute a mandatory 3% pretax contribution (deducted from your paycheck) for a total contribution of 6.3% (for Regular Class employees; employer rates vary by membership class). You cannot make additional pretax contributions above the 3% mandatory contribution. The employee and employer rates are subject to change by the Florida Legislature. - Your Benefit
Your benefit depends on the amount of money contributed to your account and its growth over time. You decide how to allocate the money in your account among the available investment funds.
FRS Pension Plan
- Who Is Eligible?
Faculty, Administrative and Professional (A&P), University President and Executive Service, and support employees (USPS). - Plan Type
A traditional retirement plan designed for longer-service employees. - Vesting
You qualify for a benefit after 8 years of service. - Contributions
Your employer contributes a fixed percentage of your gross salary as determined by the Florida Legislature and you contribute a mandatory 3% pretax contribution (deducted from your paycheck). Pension Plan benefits are not based on total contributions but rather on a formula based on your service and salary. - Your Benefit
Pays a guaranteed lifetime monthly benefit using a formula based on your service and salary while you are working for an FRS-covered employer.
You will have 90 days from the start of your employment to choose an ORP provider company or elect membership in FRS. Any employee who is eligible to participate in the ORP who fails to execute an annuity contract with one of the approved companies and to notify the division in writing within those 90 days shall be deemed to have elected membership in FRS.
Note: it is important to know that the retirement plan choice you make may be irrevocable. For example, if you elect to remain in ORP or you elect FRS, you must remain in that plan as long as you remain employed with the same institution and continue to meet the eligibility requirement.
If through other employment, you have already established membership in FRS, you may elect to enroll in ORP. If you are already vested in FRS and elect to participate in ORP, you will not lose any FRS benefits you have accrued to date; however, once you join ORP you will no longer have FRS disability coverage. You will also not be eligible for the Health Insurance Subsidy (HIS) benefits of FRS for any period of time that you participate in the ORP.
Most professionals entering public higher education choose ORP because of the following benefits:
- Various investment options – you have access to multiple investment choices through the mutual fund contract, allowing you to build a retirement portfolio to meet your needs.
You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries and disclosure booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
- Systematic retirement plan – your voluntary contributions will be deducted from your salary on a regular basis. Note: this type of plan does not assure a profit and does not protect against loss in declining markets.
- Tax-deferred investing – under the Internal Revenue Code, with the ORP you are taxed only when you begin taking distributions, generally at retirement at which time you may be in a lower tax bracket.
- Immediate vesting – you are always 100% vested in your contributions to the program, as well as any additional earnings on those contributions
- Portability of your account
Loans are not available with the ORP. Please contact your representative for more information.
As a participant of the ORP, you are eligible for full and partial cash withdrawals of your vested account balance upon termination of employment or retirement. Any withdrawals prior to age 59½ will be subject to a 10% IRS premature distribution penalty tax, unless an exception applies.
When you enroll in the ORP, your employer contributes a certain percentage of your total compensation (based on Florida State law) to the program. When you choose Voya as your provider, your contributions are forwarded to Voya Retirement Insurance and Annuity Company, which issues the ORP variable annuity contract.
The contract offers a full range of investment options from some of the nation’s most well-known money managers, with choices that span the risk/reward spectrum. You choose which investment options best suit your needs, and decide what percentage of your account is allocated to each option.
If you choose to make additional voluntary contributions, you will be immediately 100% vested in those contributions and any earnings on those contributions. You contribute a percentage of your earnings on a tax-deferred basis (subject to Internal Revenue Code contribution limits) and you pay no current tax on those contributions or the earnings until you begin taking distributions.
When you are ready to retire, you may select from several payout options, including:
- Lump sum withdrawal (total employer contributions and earnings on those contributions must not exceed $5,000 for lump sum withdrawal)
- Series of partial withdrawals
- Systematic payout options specifying a percentage, a dollar amount, or a time period.
If you die before you retire, your beneficiary may elect to receive the value of your account or select one of several settlement options.
No. There are no transaction fees, regardless of whether you make changes through the Internet or the automated voice response unit, or by speaking with a live customer service associate.
Transaction requests received at our designated location in good order before the close of the New York Stock Exchange (normally 4:00 p.m. Eastern Time, Monday through Friday) will be processed at the next determined price. Processed transaction requests are reflected in your account on the next business day. Transaction requests received in good order after the close of the New York Stock Exchange will be processed as of the close of business on the next business day. Transaction requests are processed within these timeframes regardless of whether you use the Internet, automated voice response system or talk with a customer service associate.
You will receive quarterly statements shortly after the close of each calendar quarter.