SPB 7046 - Florida Retirement System Cash Balance Plan

• Creates a new Florida Retirement System Cash Balance Plan as a third retirement option alongside the existing pension and investment plans, effective July 1, 2015.

• Establishes separate annuity savings accounts (funded by employee contributions) and retirement annuity accounts (funded by employer credits) for cash balance plan members, with guaranteed 2% annual interest credits plus potential additional credits based on investment performance.

• Closes the pension plan to new employees hired on or after July 1, 2015 (with limited exceptions), requiring them to choose between the investment plan or cash balance plan; existing pension and investment plan members may make a one-time irrevocable transfer to the cash balance plan.

• Provides vesting requirements of 5 years of creditable service for employer credits, immediate vesting of employee contributions, and benefit payment options including lump-sum distributions or annuities upon termination of employment.

• Adjusts employer contribution rates to fund the cash balance plan and modifies existing Florida Retirement System statutes to incorporate the new plan into system definitions, administration, investment procedures, and disability and death benefit provisions.