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Proposed changes to frs contributions
- 1. PROPOSED INVESTMENT PLAN CONTRIBUTION RATE CHANGES EFFECTIVE JULY 1, 2012 The Florida Legislature is considering making changes to the current Investment Plan contribution rates paid into your Investment Plan account. Two bills, House Bill 5005 and Senate Bill 2006, propose lowering the employer contribution rates effective July 1, 2012. The following tables list the current contribution rates and the proposed rates for each bill by class of membership. Current Contribution Rates Elected Officers Legislators, Governor, County, Special Risk Lt. Governor, Cabinet, City, Special Administrative State Atty., Public Special Senior Cost Items Regular Risk Support Judges Defender District Management Paid by Employer 6.000 17.000 8.350 15.900 10.400 13.200 7.950 Paid by Employee 3.000 3.000 3.000 3.000 3.000 3.000 3.000 TOTAL 9.000 20.000 11.350 18.900 13.400 16.200 10.950 House Bill 5005 Proposed Contribution Rates Elected Officers Legislators, Governor, County, Special Risk Lt. Governor, Cabinet, City, Special Administrative State Atty., Public Special Senior Cost Items Regular Risk Support Judges Defender District Management Paid by Employer 3.970 11.310 4.320 10.880 7.080 9.140 5.390 Paid by Employee 3.000 3.000 3.000 3.000 3.000 3.000 3.000 TOTAL 6.970 14.310 7.320 13.880 10.080 12.140 8.390 Senate Bill 2006 Proposed Contribution Rates Elected Officers Legislators, Governor, County, Special Risk Lt. Governor, Cabinet, City, Special Administrative State Atty., Public Special Senior Cost Items Regular Risk Support Judges Defender District Management Paid by Employer 3.300 11.000 4.950 10.230 6.380 8.340 4.670 Paid by Employee 3.000 3.000 3.000 3.000 3.000 3.000 3.000 TOTAL 6.300 14.000 7.950 13.230 9.380 11.340 7.670 The proposed rates, if they pass, may lower the total contributions paid into your Investment Plan account from 23% to 35%, depending on your class of membership and the rates that pass. Because this reduction may have an impact on your future Investment Plan benefits, you should monitor these bills closely. You can also call the MyFRS Financial Guidance Line at 1-866-446-9377, Option 2, and speak with a financial planner who can help you with estimated future benefits under the Investment Plan if the employer contribution rates change. Note that there is no proposal to change the current 3% employee contribution rate (the only change is the amount your employer would contribute). You can keep track of the status of these two bills by clicking each of the bills hyperlinks above. You can also track other proposed legislation by clicking 2012 Legislation in the Alerts & Hot Topics box on MyFRS.com.