Page 6 - 2018 How to Retire from Florida
P. 6
Question #3a:
If I am in the FRS Investment Account,
what happens when I retire?
When you leave FRS employment, • Deferred annuities that allow you
you can choose to keep your benefit to make an initial premium
invested in the plan until age 70 1/2 - payment during retirement, but
when mandatory distributions must defer collecting regular
begin, unless you are still working - guaranteed payments until later
or have it distributed in one of the in life (e.g., age 70).
following ways:
• Lump-sum cash distributions
payable to you
• Lump-sum direct rollover
distribution to another qualified • Any combination of a partial
plan or to an IRA. lump-sum payment and a partial
• Periodic distributions as annuity or rollover.
authorized by the State Board
of Administration. Your needs and personal
situation are not like your
• A fixed annuity you can colleagues across the hall. You
purchase, which would are unique, and so is your family!
guarantee you payments for Facts such as your health, your other
your lifetime and, if desired, assets, your beneficiary’s assets,
provide for a 3% annual cost- Caution! income and pension benefits, or
of-living adjustment. These your plans to continue working will
annuities can also be structured impact your choice. You should
with the Option 2, 3 or 4 review the implications of your
features available in the Pension decision carefully, seek professional
Plan. You can choose monthly advice, and be comfortable with this
or other payment periods. “forever” decision.
thereafter
A DROP Advisory Council member can assist
you in understanding your retirement options
and helping you to integrate a retirement and
investment planning strategy based on your
financial needs, goals and objectives.
