Florida

Overview

The Florida Retirement System (FRS) offers two plans for members to select as a primary benefit: FRS Pension Plan (defined benefit) and FRS Investment Plan (defined contribution). Since 2000, new employees can choose between the two plans to select as a primary benefit. The Department of Management Services, Division of Retirement (division), administers most pension and retirement benefits in the state of Florida, including a defined contribution plan for the State University System. The FRS covers general employees, public safety employees, and teachers. A separate state agency, the State Board of Administration, administers the FRS Investment Plan and manages all FRS assets.  

Plan Design

State employees and teachers, and employees of local governments participating in the FRS, have the option to participate in a defined benefit or defined contribution plan. The DC plan has been the default option for new hires since January 1, 2018.

According to the US Government Accountability Office, 95 percent of employees of state and local government in Florida participate in Social Security.

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Authorizing Statutes and Board Structure

FL Stat § 121.011 establishes the Florida Retirement System as a consolidation of existing retirement systems for state and county employees and teachers. 

The FRS is a department of the state Department of Management Services, whose director reports to the governor. There is no board overseeing the FRS.  

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.

Fiduciary Duty/Prudence Standard

FL Stat § 215.47(c) states

Investments made by the State Board of Administration shall be designed to maximize the financial return to the fund consistent with the risks incumbent in each investment and shall be designed to preserve an appropriate diversification of the portfolio. The board shall discharge its duties with respect to a plan solely in the interest of its participants and beneficiaries. The board in performing the above investment duties shall comply with the fiduciary standards set forth in the Employee Retirement Income Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A) through (C). Except as provided in paragraph (b), in case of conflict with other provisions of law authorizing investments, the investment and fiduciary standards set forth in this paragraph prevail.

Legal Protections of Retirement Benefits

Article I, Section 10 of the Florida Constitution provides that no law impairing the obligation of contracts shall be passed. This constitutional provision has been interpreted by the courts to protect vested pension benefits. Once an individual attains eligibility for a retirement benefit, the benefit is afforded constitutional protection. Case law interprets the impairment of contract protections in Art. I, §10 to permit only prospective adjustments to pension benefits. Florida Sheriff's Association v. Department of Administration, 408 So.2d 1033 (Fla. 1981); State ex rei. Stringer v. Lee, 2 So.2d 127 (1941); Anders v. Nicholson, 150 So. 639(Fla. 1933); O'Connell v. State Dept. of Admin, 557 So.2d 609 (Fla. App. 3 Dist. Feb. 2006)(holding that benefits vested upon attainment of normal retirement eligibility). In 2012, a state court trial judge in Williams v. Scott (Case No. 2011CA1584) struck down amendments to the state retirement system that increased the employee contribution and eliminated the COLA for future years of service. (FL CONST., Article I, §10) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition and characteristics of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Florida (September 24, 1900)

Population (2023) 22,610,726

Florida public pension statistics,
per U.S. Census Bureau as of FY 2023

Assets

$230.2 billion

Active Members

716,808

Annuitants

540,948

Benefits Paid

$15.4 billion

Employee Contributions

$1.2 billion

Employer Contributions

$6.5 billion

Systems

One state system that accounts for 81 percent of assets and 87 percent of public pension plan participants in the state. The Census Bureau also reports 461 local systems.

More Data

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Commentary on Short Term Market Volatility and Public Pension Plans

NASRA recently published (April 16, 2025) a commentary on short term investment market volatility and public pensions. Although headlines may focus on daily or weekly market fluctuations, short-term declines should be viewed in the context of public pension funds’ long-term, disciplined approach to investing. Public pension funds are managed with a long-term focus. These funds are overseen by professional investors who follow disciplined strategies rather than reacting to daily market fluctuations. Their portfolios are highly diversified to reduce risk, and most use tools such as asset smoothing to limit the impact of market swings and help maintain stable funding over time.