Click hereto learn more about the differences between the 457(b) and 403(b) plans. Pay Period: Monthly Bi-Weekly * Section 2 - Enter desired investment change I would like my contributions to increase now by $ or % per pay period. Use the worksheet below to get an idea of what this can mean for your future: Estimated Future FRS Pension Plan Value (monthly Option 1 benefit at normal retirement age), Estimated Value of Your Deferred Compensation Plan Account. myFinancial Future When you work for the state, your compensation is more than a paycheck. Why should I enroll? This amount will be added to your current contribution amount. What is the Florida Deferred Compensation Plan? The Florida Deferred Compensation Plan is a supplemental retirement plan for employees of the State of Florida, including OPS employees and employees of the State University System, State Board of Administration, Division of Rehab and Liquidation, Special Districts*, and Water Management Districts* [established under Internal Revenue Code (IRC). your savings to and through retirement. Taxes are deferred until withdrawals are made. When you contribute a percentage of your pay instead of a flat dollar amount, though, your retirement savings get a raise every time your salary does. Send us a message. This means that the employee can benefit from tax-deferred growth on their investment options. Each of the Investment Providers offers a menu of Mutual Funds, a Fixed Account, and a suite of Target Date Funds. Contact us Phone 1-800-949-4457 Monday-Friday 8 a.m. - 11 p.m. It is not intended as investment, legal, or accounting advice. Learn what you can controlto help resist the urge to react on impulse during market fluctuations. 866-446-9377 option 4. www.myFRS.com. 0000001148 00000 n There are deadlines for making changes to contribution amounts, which are based on payroll warrant date deadlines. First, you will need to choose a plan provider. Exchange orders received on or after . Not a Deposit of or Guaranteed by a Federal Government Agency or any Bank Affiliates. A Participant is required to receive distributions on April 1st of the calendar year following the year of reaching age 70*, then every year thereafter. There are many reputable providers, so research to find one that best suits your needs. Disclaimer - Please note that these are illustrative estimates only and your personal situation may vary. Contributing to the Deferred Compensation Plan can help you save at a comfortable pace to create a greater benefit for you in retirement. Contributions are usually made on a pre-tax basis, which means that they are not subject to income tax. If investment advice or other expert assistance is required, the services of a competent professional should . Talk to a qualified financial planner to ensure youre taking advantage of all the available deductions and that your plan complies with all the applicable regulations. Learn more. The State of Florida Deferred Compensation Plan is an excellent way to help accumulate money for your retirement. Voluntary Retirement Plans | Office of Human Resources *Stopping a contribution to the Plan does not cancel or close the account and balances must remain in the Plan until separation from service. May Lose Value.3. Although there are some great advantages of deferred compensation plans, there are also some drawbacks. The amount and type of risk varies from one investment to another. It is vital to review the plans rules before making any withdrawals. Although tax-advantaged retirement plans such as 401k accounts are technically deferred compensation plans, the term deferred compensation in general use refers to "nonqualified" plans . '?RN+`z@%d(M 0000003838 00000 n All FSU employees can participate in a Deferred Compensation 457 Plan. The 457 Individual Retirement Account reduces the amount you pay for Federal Withholding taxes out of your paycheck. investment products guaranteeing principal and interest, please refer to the What happens to my account when I pass away? After completing Sections 1 through 3, click the Confirm Enrollment Request button to be directed to the submission page. Target Date Funds provide a diverse mix of investments (stocks, bonds, and cash equivalents) that periodically and automatically adjust over time to grow more conservative as you near your target retirement date. Standard Catch-Up eligibility can be determined by contacting the Bureau of Deferred Compensation. Deferred Compensation - Miami-Dade County Who is Eligible for Deferred Compensation in Florida? 38 24 Step 2: Please select contribution amount: (If an approximate annual salary was entered in Section 1, percentage deferrals will calculate an approximate dollar amount.). Deferred compensation Florida plans are an excellent way to save for retirement while still enjoying the fruits of your labor. Yes. Reallocate your total balance to different funds. Alight Solutions. Can I transfer money from my other Pre-Tax Retirement Savings Plans into this Plan? no earlier than 20 business days after submission of this form. Securities and Insurance Products are NOT Insured by FDIC or any Bank Agencies.2. Compensation for Mid-Period Hires, Separations and Part-Time Employees [11-10-11] (98.07 KB) Deferred Retirement Option Program (DROP) Leave Administration [7-15-22] ( 276.71 KB ) Defining "Continuous Service", "State Government Creditable Service", and "Creditable State Employment" for purposes of administering Rule 60L-34, Florida . However, if a Participant is still employed by the State of Florida when they turn 70, they are not required to begin a distribution and can continue to make contributions into the Plan. This article will explain everything you need to know about deferred compensation in Florida. Social Security benefits are based on your earnings history, not your participation in a deferred compensation plan. If any Primary Beneficiaries predecease the Participant, that portion will go to any Contingent Beneficiaries. Does participation in this Plan affect the calculation of my benefits due from the Florida Retirement System (FRS) or the Social Security Administration (SSA)? 0000001327 00000 n Building Your Financial Future / Financial Future - Florida FLORIDA DEFERRED COMPENSATION PLAN AND THE DROP. The Pros and Cons of Deferred Compensation Plans These videos, known as the Enrollment Series, cover basic enrollment and participation related topics. Is there a chance that I could receive less than I invested into the Plan? However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. The State of Florida's 457(b) Government Deferred Compensation Plan is a participant directed investment program, established by Section 112.215 Florida Statutes. Yes, there may be penalties for early withdrawal of deferred compensation in Florida. startxref Please consult the Bureau of Deferred Compensation for more information about warrant date deadlines. %%EOF services of a competent professional should be sought. Is there any chance that I will lose money? 38 0 obj<> endobj Voya provides you with Plan information, saving and investing education, transaction processing, and more. The Florida Deferred Compensation Plan is available to all State of Florida employees, including OPS employees and employees of the State University System, the State Board of Administration, the Division of Rehab and Liquidation, Special Districts*, and Water Management Districts.*. The minimum contribution is $20 per monthly pay or $10 per bi-weekly pay, but contributions cannot exceed 80% of your paycheck. Funds remain in the Deferred Compensation Plan and continue benefiting from tax-deferred growth. State of Florida 457 Deferred Compensation Plan | State of Florida 457 If you do not want to contribute to the Target Date Fund, please contact your selected Investment Provider Already enrolled in your plan? Maximum? State of Florida 457 Deferred Compensation Plan Log In Already enrolled in your plan? 0000000776 00000 n Participants may transfer between Investment Providers at any time without penalty. The minimum contribution is $20 per monthly pay period or $10 per bi-weekly pay period. each respective Provider. The primary purpose is to help you establish a sum of money from which you may withdraw, helping to supplement your retirement income. Participants will continue with the ability to change asset allocations. authorizes the creation of the State of Florida Deferred Compensation Plan, which is intended to qualify for tax deferral pursuant to 26 USC 457. You may view thecurrent limits here. Here are a few things to consider when setting up a deferred compensation in Florida: First, deferred compensation in Florida are subject to both state and federal taxes, so youll want to consult with a tax advisor to ensure youre taking advantage of all the available deductions. xref Will my Investment Provider withhold any taxes from my distributions? That leaves a 22% gap in income replacement. Serving the special needs community is an extension of Voyas vision and mission to help all Americans have the quality of life they seek in retirement. Florida Deferred Compensation Plan. For Specific state registration please review the investment advisor public disclosure link: https://www.adviserinfo.sec.gov/. Participants have the option to designate both Primary and Contingent beneficiaries* to receive the account balance upon death. Please carefully consider the benefits of existing and potentially new retirement accounts and any differences in features. Pre-tax contributions to the Plan are made automatically through payroll deduction, which can help to lower your current taxable income. Voya Financial (NYSE: VOYA) is an Investment Provider for the Florida Deferred Compensation Plan and a retirement company that services the financial needs of millions of individual and institutional customers throughout the United States. Kl([)M4-\@\46y0.vIFc\F/_dXC^SOhcR\ Contributing to the Deferred Compensation Plan can help you save at a comfortable pace to create a greater benefit for you in retirement. Section 1 - Personal Identifying Information: Gender: Male: Female * SSN: . Login to your retirement account. When will I be taxed on the income I defer and the earnings I accrue? ET on Wednesday, July 5. 0000004083 00000 n *Note: If you are initially enrolled in the FRS Pension Plan on or after July 1, 2011, you must work a minimum of eight years to be vested and eligible for a monthly retirement benefit. View Page UPCOMING EVENTS Facts Before Feelings (Session 3) We will typically respond in one business day. Florida Deferred Compensation Plan / Financial Future | MyBenefits Deferred Compensation: Plans and Programs to Know - NerdWallet The Request to Increase Contribution will be processed as soon as possible. EZ Enrollment Form - Deferred Compensation HlTK0WzJ8*`wH[CDNJghT7))~ [zcHA!8sHadr^bOwk}xwyU}{*$w+ZD0(xNrv/5Z]0RF]rrTG8i+=lfZ Tools and calculators - Deferred Compensation Participants can use the Fixed Account to minimize risk and diversify investments. The deferred compensation agreement gives the employee flexibility in receiving the deferred funds. Typically, you receive deferred compensation after retiring or leaving employment. services of a competent professional should be sought. Are there any Penalties for Early Withdrawal of Deferred Compensation in Florida. It involves identifying a risk, measuring the potential impact, managing circumstances to the extent possible, then reassessing your situation and risk. Voya provides you with Plan information, saving and investing education, transaction processing and more. When you retire, you can withdraw the money from your deferred compensation plan without paying growth taxes. Finally, review your deferred compensation plan regularly to ensure it is still on track to meet your retirement goals. Each Mutual Fund falls into an asset category, which identifies what types of stocks or bonds are held within that fund. Fourth, deferred compensation plans can be used in conjunction with other types of retirement savings plans, such as 401(k)s and IRAs. With a little planning, a deferred compensation in Florida can be a great way to provide yourself with a comfortable retirement. Make elections for your future contributions and your existing balance. The Florida Deferred Compensation Plan is offered to all State of Florida employees, including OPS employees and employees of the State University System, the State Board of Administration, the Division of Rehab and Liquidation, Special Districts*, and Water Management Districts*. No. As an employee for the state you build your financial future in several ways: Estimated monthly FRS Pension Plan benefit earned, If you save 6 percent of pay and your account's investment return averages 7 percent per year. Third, because deferred compensation plans can be complex, its important to work with a financial planning firm with experience setting up these plans. The FRS Investment Plan lets you choose how your money is invested and how you want to receive payments. When using a deferred compensation plan, the professional can defer a portion of their income to the plan where it can grow tax-free. Voya Financial (NYSE: VOYA) is an Investment Provider for the Florida Deferred Compensation Plan and a retirement company that services the financial needs of millions of individual and institutional customers throughout the United States. Second, you must decide how much money you want to contribute to your deferred compensation plan each year. I want to increase my contribution every January by $ or % per pay period. 850-907-6500 or toll-free 844-377-1888. www.frs.myflorida.com. The Plan and Voya Financial have reviewed the investment options available to you. Retire. But some plans may have exceptions to this penalty, such as for certain medical expenses or disability. What Types of Deferred Compensation Plans are Available in Florida? The Request to Increase Contribution will be processed as soon as possible. Early in your career, you are primarily allocated in growth-based investments. 200 East Gaines Street, Tallahassee, FL 32399, Copyright 2023 Florida Department of Financial Services, Publications, Administrative Documents, and Forms. endstream endobj 39 0 obj<> endobj 41 0 obj<> endobj 42 0 obj<>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 43 0 obj<> endobj 44 0 obj<> endobj 45 0 obj<> endobj 46 0 obj<> endobj 47 0 obj<> endobj 48 0 obj<> endobj 49 0 obj<> endobj 50 0 obj<> endobj 51 0 obj<> endobj 52 0 obj<>stream The Plan is not limited by the Open Enrollment Period, and eligible employees may enroll in the Plan at any time of the year*. Target Date Funds are a mix of investments such as stocks, bonds, and cash equivalents that periodically Doing so will ensure that your plan is properly structured and that all the necessary steps are taken to bring it into compliance with the law. *Processing of paperwork and IRS limitations will determine the exact date deferrals will start after enrollment has been initiated. The Plan also includes a diminimus withdrawal provision allowing the in-service distribution of accounts that do not exceed $5,000, if certain conditions are met. What are the benefits of deferred compensation? Read on if youre thinking about setting up a deferred compensation plan or are just curious about how they work. Automatically rebalance to the investment elections you have on file at a frequency of your choice. Risk Management - Florida Department of Financial Services trailer Voya Financial | Deferred Compensation | MyFloridaCFO 0000001470 00000 n Participants are not required to take or move an account balance once leaving employment. Contact your Investment Provider to request the. The assets in Fixed Accounts are backed by the financial strength of the insurance companies offering these products. Visit the Investments section for more information about the investment options and their performance. To enroll with more than one Investment Provider, please complete this form for Deferred compensation is an employee benefit in which an employee agrees to forgo a portion of their current salary in exchange for the same amount (or more) when they retire or leave the company.
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