3420A - RETIREMENT PROCEDURES

The Board makes contributions into the Florida Retirement System (FRS) for all instructional employees in a regularly established position.

Temporary and substitute employees are not eligible for membership in the FRS. Members of FRS are automatically covered for Social Security. FRS benefits are not offset by Social Security benefits.

Employees who terminate employment prior to vesting in FRS and do not return to covered employment forfeit all contributions made by the Brevard Public Schools on their behalf.

Defined Benefit Plan

Pension Plan members make mandatory employee contributions to their retirement as required by FRS. Employees qualify for retirement by attaining the age and service requirements established by the State legislature for either normal or early benefits under the employee’s class of membership.

Members initially hired before July 1, 2011 are vested after the completion of six (6) years of creditable service. Normal retirement benefits are available after thirty (30) years of service or age sixty-two (62) after vesting.

Early retirement is available for regular class members initially hired before July 1, 2011 at age forty-two (42) and one (1) month with six (6) years of creditable service. A substantial reduction is imposed on early retirement benefits.

Members initially hired on or after July 1, 2011 are vested after the completion of eight (8) years of creditable service. Normal retirement benefits are available after thirty-three (33) years of service or at age sixty-five (65) after vesting.

Early retirement is available for regular class members initially hired after July 1, 2011 at age forty-five (45) and one (1) month with eight (8) years of creditable service. A substantial reduction is imposed on early retirement benefits.

Employees who terminate prior to vesting may resume membership in the FRS if they return to retirement-covered employment.

Employees who terminate after they are vested in FRS but before they are eligible for normal retirement benefits may defer retirement until a later date or take an early retirement.

Creditable service is earned when employees are paid for work in a regularly established position. One (1) month of retirement service is earned for each month in which a salary payment is received. Employees who work the number of months required in their work year earn a full year of service credit (e.g., ten (10) month instructional employees who work ten (10) months earn a full year of creditable service).

Special provisions apply for earning service credit for military service, out-of-State public and Federal employment, and leaves of absence.

The District defines retirement according to the Florida Retirement System definition for employees in the FRS Pension Plan, as collecting a pension benefit upon termination of employment.

Regular Disability Retirement

Regular disability retirement is an option for an employee who has completed eight (8) years of creditable service and is permanently and totally disabled.

In-Line-of-Duty Disability Retirement

A regular employee is covered for in-line-of-duty disability benefits from the first day of employment.

An in-line-of-duty disability retirement is for an illness or injury that arises out of and during the performance of an employee’s duties as required by the employer. The employee must be permanently and totally disabled as a result of the illness or injury.

The injury or illness must occur before the employee terminates employment.

Deferred Retirement Option Program

The Deferred Retirement Option Program (DROP) is an alternative method of payout of retirement benefits where participants elect to retire and defer collection of their pension benefits. Eligible members may have their retirement benefits paid to a DROP savings account that earns interest while simultaneously continuing to work for the Board. DROP participants are not required to make employee contributions.

Most vested FRS Pension Plan members who have reached normal retirement date or age are eligible to participate in DROP.

DROP participants are not eligible to apply for either regular or in-line-of-duty disability retirement because they are already retired.

The District defines retirement from the DROP programs when the DROP period ends and the DROP participant terminates employment and begins to collect a retirement pension benefit.

Participants in the DROP program may also choose to retire from the DROP program before the end of their DROP period, by terminating employment and collecting a retirement pension benefit.

Defined Contribution Plan

Investment Plan members make mandatory employee contributions towards their retirement as required by FRS.

Normal retirement benefits are available to members initially hired before July 1, 2011 after thirty (30) years of service or age sixty-two (62) after the completion of six (6) years of creditable service.

Early retirement with the District is available to members initially hired before July 1, 2011 at age fifty-nine and one-half (59 1/2) after the completion of six (6) years of creditable service.

Normal retirement benefits are available to members initially hired on or after July 1, 2011 after thirty-three (33) years of service or age sixty-five (65) after the completion of eight (8) years of creditable service.

Early retirement with the District is available to members initially hired on or after July 1, 2011 at age fifty-nine and one-half (59 1/2) after completion of eight (8) years of creditable service.

Upon retirement from the District, members of the FRS Investment Plan agree to take a distribution (a rollover is considered a distribution) from his/her FRS Investment account to fulfill the definition of retirement for the FRS Investment Plan.

Terminations

The Superintendent accepts resignations and retirements on behalf of the Board when a District termination document is signed. The terminating employee will receive a copy of the resignation or retirement form. Eligible accumulated vacation will be paid within thirty (30) days after resignation or retirement. Accumulated sick leave will be paid sixty (60) days after the date of retirement.

Reemployment

Reemployment provisions apply to all regular, early, and employees retiring after participating in DROP. Effective July 1, 2010, Brevard Public Schools may not hire a retiree within the first six(6)full calendar months after ceasing employment. Instructional employees, who are re-employed during the seventh and the twelfth month following retirement must forfeit their retirement benefits for the period of employment. There are no reemployment exceptions.

Disability retirees must terminate their disability benefits if they are gainfully employed in any capacity with any FRS employer. Detailed information is available in the FRS Handbook.

Retirees who are reemployed on or after July 1, 2010 are not eligible to become renewed members and earn another retirement benefit.

Revised 8/03
Revised 11/04
Revised 1/05
Revised 4/27/10
Revised 5/24/13

©Brevard County Public Schools 2013