Florida Retired Educators Association

A close relationship has existed between the Florida Retired Educators Association (FREA) and the Florida Retirement System (FRS) since the inception of the latter 30 years ago and for obvious reasons.

Most, if not all, FREA members are enjoying their retirement at least in part as the result of FRS’s excellent retirement plan. Such has been the case because the FRS’s traditional Defined Benefit (DB) type pension plan, the only plan available through the FRS, has efficiently produced handsome returns for its members. There were only a few minor changes in this plan during the first 30 years.

However, in its 2000 session, the Florida Legislature passed legislation leading to the establishment of a second type pension plan, the optional Defined Contribution (DC) type pension plan. This plan is to be administered by private sector financial institutions rather than the Florida State Board of Administration as has the traditional DB plan. This legislation became law with Governor Bush’s signature last May and in becoming law, brought about a major change in the System.

Let us explain:

Under this law all currently retired members of the Florida Retirement System, including retired educators of FREA, are "locked in" the traditional DB retirement plan and thus are "set" in retirement. The new optional DC plan will be available only to actively employed teachers (and other government employees) who choose it over the traditional DB plan after June, 2002. Thus, while the FREA membership in general and the FREA Legislative Committee in particular, continue the close relationship with the FRS, our concerns for the System now have added perspectives.

Now, with the DC plan becoming available, our top priorities this past year and for the year to come are to assure that the DB plan remains as a choice in the future for those who must choose and that these same folks have a complete and unbiased presentation (education) of the DC plan.

Other FREA Legislative Committee concerns are getting the Division of Retirement placed under the Trustees of the State Board of Administration and the continuous monitoring of actions affecting the Florida Retirement System Trust Fund.

For further information regarding the Florida Retired Educators Association Legislative Committee, contact Larry Carmichael, Chairman, Phone# (850) 877-7618 (e-mail: L_KCarmichael@hotmail.com) or E-mail the FREA office at: barbara@frea.org

Legislative District Chairmen