SMS Optional Annuity Plan

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In order to select the SMS Optional Annuity Plan you must be eligible to participate in the Senior Management Service Class. Participation in the Senior Management Service Class shall be compulsory for any member of the Florida Retirement System in a position that has been designated eligible for inclusion in the Executive Service of the State University System or who holds a position as president of a state university, unless such member elects, pursuant to Florida State Statutes, Title X, Chapter 121 §121.35, to participate in the optional retirement program. 

For more details on who qualifies as a member of the Senior Management Service Class, please consult your employer or the Florida State Statutes, Title X, Chapter 121.

Starting early has its advantages

Contributions

Each member of the optional annuity program shall contribute an amount equal to the employee contribution required under Florida State Statutes, Title X, Chapter 121 § 121.71. There are three kinds of contributions in the plan: employer contributions, mandatory employee contributions, and voluntary employee contributions.  The employer shall contribute on behalf of such employee an amount equal to the difference between 9.27 percent of the employee’s gross monthly compensation and the amount equal to the employee’s mandatory contribution based on the employee’s gross monthly compensation.

Vesting

The plan provides for full and immediate vesting of all contributions. However, employer-funded benefits are subject to forfeiture if a member is found guilty under certain Florida felony statutes.

Investment flexibility

All contributions to your plan will be invested in the Portfolio Director® Fixed and Variable Annuity* options you designate. Remember that retirement accounts are long-term investments. The value of the variable options will fluctuate so that your investment values might be worth more or less than the original cost.

Retirement plans and accounts such as 401(a)s, IRAs, 403(b)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. Investment in an annuity within a plan does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.

* Policy Form #UITG-194

Accessing your money before retirement

Withdrawal restrictions

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal penalty.

Under Florida law you are not eligible to access your contributions and related earnings in your plan account until you terminate all employment relationships with all participating Florida Retirement System (FRS) employers for three full calendar months except as described below.

You may be eligible to receive, upon request to the Division of Retirement, up to 10 percent of your plan account balance after termination for one full calendar month if the Division determines that you meet normal retirement date requirements.

Even though you are not retired you are eligible to request a refund of your voluntary employee contributions and related earnings after you terminate all employment relationships with all participating FRS employers for three full calendar months.