Retirement Planning
Regular full-time and part-time employees must be enrolled in the plan. Florida Retirement System (FRS) members can choose between the Pension Plan or the Investment plan. Both plans require employees to contribute 3% of their gross earnings pre-tax. You cannot change the amount you contribute. Contribution rates are set by the Florida Legislature.
- Traditional pension benefit based on a formula using salary, years of service, FRS membership class, and age.
- Participants qualify for a benefit after 8 years of service. Full benefits are payable when reaching full retirement or age as defined by the plan.
- The State Board of Administration manages the Pension Plan Trust Fund and the plan parameters are set by the Florida Legislature.
- Retirement benefits are based on contributions made to the investment account and the investment performance of the account overt time.
- Benefits are payable after one year of service.
- Participants are responsible for choosing investment funds available within the Investment Plan and managing their account.
In lieu of the Florida Retirement System (FRS), full-time instructors and administrators have the option to participate in the State Community College System Optional Retirement Plan (SCCSORP). Eligible employees may withdraw from FRS and enroll in a tax-sheltered account program with one of the state approved SCCSORP companies. The college and the employee make the contribution to the participating SCCSORP vendor chosen by the employee. There is no vesting requirement. Election to this program is upon full-time employment or within ninety calendar days from beginning in a qualified position.
Contact benefits@palmbeachstate.edu for plan documents and provisions.
Participating SCCSORP Companies
Corebridge Financial
Grant West
954-405-3439
Voya Financial (formerly ING)
Ryan Tuff
954-900-4430
Noah Kahn
954-689-9401
MetLife Resources
Ken Suchy
561-371-4312
TIAA
800-842-2252
Deferred Retirement Option Program (DROP) allows you to retire under the Florida Retirement System (FRS) Pension Plan without terminating your employment for up to 8 years and earn interest compounded monthly. If an employee reaches normal retirement based upon years of service and wish to participate in DROP, you may complete the paperwork by making an appointment with a member of the Benefits Team no earlier than 6 months before the date you plan to begin participation.
Use the "Create Estimate" tool in your FRS Online account to estimate your retirement benefit and project your DROP accumulation. You can also contact:
Bureau of Retirement Calculations
Telephone (Toll Free): 888-738-2252
Telephone: 850-488-6491
Email: calculations@dms.myflorida.com
Your participation in DROP does not change your conditions of employment. When your DROP period ends, you must terminate all FRS employment. At that time, you will receive your accumulated DROP benefits and begin receiving your monthly retirement benefit.
While participating in DROP, each full fiscal year a percentage of sick time can be sheltered through the BENCOR Special Pay Plan. Each June 30, the College calculates the amount you are eligible for payout based on your hire date and then applies the following scale: first full fiscal year in DROP = 15%, year 2 = 20%, year 3 = 25%, year 4 = 30%, year 5 = 40%, year 6 = 50%, year 7 = 50% and 100% when you depart the college. Sick leave sheltering only takes place if the amount is in excess of $5,000; if less, your sick time remains available for use. Vacation can also be sheltered through a BENCOR account. If you choose to do so at the beginning of DROP, you will need to use your vacation time during DROP as you cannot be paid out again.
PLEASE NOTE: Monies in BENCOR accounts cannot be withdrawn until you terminate employment with the College. Loans are also not available. The current IRS limit for this type of account is stacked, which means under the Special Pay Plan, $55,000 can be sheltered and an additional amount can be sheltered under a 403(b) account reduced by the amount that you contributed voluntarily in the preceding calendar year.
Participants currently in the Pension Plan's Deferred Retirement Option Program (DROP)can now utilize the free online Financial Engines' Advisor Service. The Advisor Service can create a picture of your current financial situation and help answer common questions about how ready you are for retirement. You can call toll-free at 1-866-446-9377, Option 2, and speak with an Ernst & Young financial planner. Participants who utilized the Advisor Service prior to joining DROP will need to re-enter their financial information in the Advisor Service.
Additional information can be found at the Florida Department of Management Services DROP website or contacting Benefits.
Alternate to Social Security (ALTSS)
While you are employed as a Temporary Employee with Palm Beach State College, you will be automatically enrolled in a 403(b) Tax Sheltered Annuity Plan in lieu of participation in Social Security FICA Alternative Plan. This means that the College will deduct and deposit 7.5% of your gross earnings to an account established in your name with the TIAA-CREF. TIAA-CREF has been selected by the College’s Board of Trustees to administer this 403(b) Alternative to Social Security Program.
This plan does not allow for matching contributions by the College under provision
of the IRS Code 3121(7)(b).
- Participants are fully and immediately vested in the contribution applied to your contract;
- Funds can only be withdrawn after all employment ends with the College
- Withdrawals may be subjected to early withdrawal penalty and ordinary income taxes prior to reaching age sixty-five
All employees, with the exception of students, may participate in the College's 403 (b) and 457 Plans in which the employee contributes pre-tax earnings to an Internal Revenue Code 403(b) plan. There is no vesting requirement, although Internal Revenue Service laws are in place. Additional Plan information can be found on the 403b/457 Summary Plan Information.
First time enrollees must: Contact a participating company below to obtain a prospectus and open an account. Once the account is active, employees must complete a "Change Retirement Savings" event in Workday. Detailed instructions can be found in the Workday Knowledge Base. If you have an existing Lincoln Investment 403b account, elections must be changed through the paper form 403b Salary Reduction Authorization and submitted to payroll for processing.
Participating 403b/457 Companies:
AXA Equitable
Product: Variable and Fixed Annuities
Contacts:
- Ryan McLain (BR)
561- 961-9343 - Mario Basilone
561-226-8746 - Danielle Boccia
561-251-3228 - Carlo Della Mea (LW)
561-889-6548 - Donna Timmerman
561-647-5976
Fidelity
403b Plan #56302
457b Plan #87347
Product: No Load Mutual Funds
Contact:
- No local contact
800-343-0860
Voya Financial
Product: Variable and Fixed Annuities
Contact:
- Bert Ritter - Sales Agent
352-245-1110 - Voya Customer Service
800-584-6001
MetLife Resources
Product: Fixed Annuity and Mutual Funds
Contact:
- Kenneth Suchy
800-763-2838
561-371-4312
The Legend Group
Product: Mutual Funds
Contacts:
- Sergio Esteve:
561-471-0349 - Lynn Balch
561-601-7297 - Jessica Lee Kovachik
561-472-5717
TIAA
Product: Variable and Fixed Annuities
Contact:
- No local contact
800-842-2252
Corebridge Financial
Product: Variable/Fixed Annuities and Mutual Funds
Contact:
- Grant D. West
561-684-3775
The Florida Retirement System provides MyFRS Financial Guidance Line toll-free at 1-866-446-9377, a free service to all FRS members. Members have access to unbiased financial planners who can answer all your questions about retirement planning, the FRS retirement plans, and managing your finances. In addition, all FRS members have access to an easy to use retirement planning solution through their digital advisor service, GuidedChoice, available at www.myfrs.com. This digital advisor service can be used for your Investment Plan account, as well as any other supplemental retirement accounts you - or your spouse - may have (457, 403b, IRA) to provide a complete view of your retirement savings. You will also find forms, publications, employee workshops and videos to assist you in planning for retirement.
MyFRS calculators can give participants an idea of how long retirement savings will last based on their retirement savings and inflation adjusted withdrawals.
The College has implemented a special pay plan for employees who are terminating, retiring, or entering into DROP and have at least $5,000 of accumulated sick leave and/or annual leave pay out. With this plan, employees will have the value of their accumulated leave deposited as a pre-tax contribution into a special pay plan up to the current $66,000 limit subject to IRS rules and regulations. Not only will you save in Federal taxes when you leave the college, but you will also avoid the 6.2% Social Security tax and the 1.45% Medicare tax on plan contributions. Employees who do not have $5,000 in terminal leave pay-out will be paid out their leave subject to Federal, Social Security and Medicare taxes.
Once the contribution is made to the Plan, you are immediately 100% vested into a fixed or guaranteed account. At any time, you may self-direct your investment in a choice of 22 accounts. After terminating employment you may also elect to rollover the tax-deferred funds into an IRA or another tax qualifying plan, or you may immediately withdraw your funds.
