CF Employee Benefits

Retirement Process

Initiating Retirement
The first step to begin the retirement process is to submit a resignation letter or Separation Notice. Submitting your resignation will prompt your department supervisor to complete the proper paperwork (a Personnel Action Form or PAF) to initiate your separation from the college.

Once HR receives the PAF and resignation letter/Separation Notice, we will begin working with you to finalize your retirement.

Pension Plan

Information Regarding Pension Plan Retirement
You may begin working on retirement paperwork up to 6 months prior to your retirement date. See the FRS Pension Plan Retirement Checklist.
In advance of scheduling a meeting with Human Resource to begin the retirement process:

Review the retirement guide, Ready, Set, Retire, from the Division of Retirement.
Complete the FRS Retirement Application Packet

You are responsible for completing as much of the application packet as you can – except areas requiring your signature in the presence of a notary. HR can notarize the documents and assist with any questions you may have.

Please note: You must choose from 4 options regarding how your retirement will be dispersed. If you choose option 1 or 2, and you are married, your spouse must also complete a portion of the form in the presence of a notary.

You are required to include proof of birth as part of the application submission process. A Birth Certificate is accepted; however, new guidelines have been released from the FRS which list additional document types they will accept going forward.

Make an appointment to finalize your retirement with Human Resources.
Human resources can assist with any additional questions you may have. HR can also notarize the FRS application – please remember to refrain from signing in any areas of the document that require the presence of a notary.

Health Insurance Subsidy
Whether you retain CF’s health insurance or are enrolled in another health plan after retirement, you may qualify for a Health Insurance Subsidy through FRS as long as you continue with a health plan. The Health Insurance Subsidy is only available to members of the Florida Retirement System. Retired members of FRS will receive a monthly benefit for the payment of health insurance premiums. The benefit amount equals $7.50 per month for each year of creditable service but not more than $225 per month.

To qualify, the Health Insurance Subsidy form will need to be completed after your retirement date and sent to FRS.

Terminal Pay
Please see Employee Checklist and Resources – Exit Process for Separating Employees page for information on terminal pay.

TSA Consulting
TSA Consulting Group is responsible for managing the disbursement or roll over requests for all tax-sheltered annuities offered through the college. Please work directly with your annuity representative and send all requests directly to TSA Consulting Group (PO Box 4037, Fort Walton Beach, FL, 32549; Phone: 888-796-3786, Option #4; Fax: 866-741-0645; www.tsacg.com)

Investment Plan

Information Regarding Investment Plan Retirement
In advance of scheduling a meeting with Human Resource to begin the retirement process:
Review the FRS Investment Plan Retirement Checklist
Review the Investment Plan Termination Kit

Investment plan members do not complete an FRS application form with Human Resources. We will report your termination to FRS; you must then contact FRS directly to make decisions on how you would like to receive your investment funds (lump sum, partial payments or direct roll over).
The information below (in red) is taken directly from the FRS Employer Handbook regarding distribution of Investment Plan Benefits:

Distributions under the FRS Investment Plan may not be made until the member has been terminated for three calendar months. However, up to 10 percent* of the Investment Plan account may be distributed to a member who has been terminated for just one calendar month if the member has met the requirements for normal retirement under the FRS Pension Plan, as provided in section 121.021(29), Florida Statutes.

* Note that this type of early partial distribution must first be authorized by SBA rule.

If you have questions specifically about the FRS Investment Plan, contact FRS directly: 1-866-446-9377.

Schedule a meeting with Human Resources to finalize other aspects of your retirement, such as continuation of benefits, health insurance subsidy and terminal pay information.

To qualify, the following Investment Plan Health Insurance Subsidy form will need to be completed after your retirement date and sent to FRS.

Terminal Pay
Please see Employee Checklist and Resources – Exit Process for Separating Employees page for information on terminal pay.

Optional Retirement Plan (ORP)

Deferred Retirement Option Program (DROP) Process
The Deferred Retirement Option Program (DROP) provides you with an alternative method for payment of your retirement benefits for a specified and limited period if you are an eligible Florida Retirement System (FRS) Pension Plan member. Under this program, you stop earning service credit toward a future benefit and your retirement benefit is calculated at the time your DROP participation begins. While you are in the DROP, your monthly retirement benefits accumulate in the FRS Trust Fund earning interest while you continue to work for an FRS employer. Upon termination, your DROP account is paid to you as a lump sum payment, a rollover or a combination partial lump sum payment and rollover. Monthly benefits are paid to you in the amount as calculated upon entry into DROP, plus any applicable cost-of-living adjustments for intervening years.

Initiating DROP
You may apply up to six months before reaching your normal retirement date or DROP deferral date. To maximize your time in DROP, the division must receive your DROP application and election forms no later than the last working day of the month you intend to begin DROP participation.
In advance of scheduling a meeting with Human Resource to begin the DROP process:
Review the Drop Booklet.
Complete the FRS DROP Application Packet

You are responsible for completing as much of the application packet as you can – except areas requiring your signature in the presence of a notary. HR can assist with any questions you may have and notarize the documents.

Make an appointment to finalize your DROP paperwork with Human Resources. Human resources can assist with any additional questions you may have. HR can also notarize the FRS application – please remember to refrain from signing in any areas of the document that require the presence of a notary.

What to Expect When Your DROP Terminates
If you work until your original Deferred Retirement Option Program (DROP) termination date, the Division of Retirement will mail you your DROP Termination Packet approximately 90 days prior to your last day of employment. If your employment ends before your original DROP termination date, it is important that either you or your employer contact the Division of Retirement as soon as possible so you can receive your DROP Termination Packet in a timely manner. The Division of Retirement can be contacted via phone, mail, fax, or email to report your new DROP termination date.

Sick Leave Pool Membership
Please be advised that if you are a current member of the Sick Leave Pool (SLP), you will become ineligible for continued SLP membership if you elect to become a DROP participant. Per the Sick Leave Pool Administrative Procedure:
16) Employees who elect to participate in the 401(a) Deferred Terminal Pay Compensation Plan (Bencor Plan) are automatically removed from the sick leave pool.