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:

More Data

• Public Fund Survey Summary of Findings
• Roll Call (NASRA members-only)