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• July 2015 •

Annual Fee Disclosure Statement ...2

2015 Workshop Schedule ..............3

Financial Planners Not Endorsed by FRS ............................................3

2nd Election Reminder .....................3

Important New Hire Enrollment Deadlines .......................................4

Continues on page 2

Table 1: Uniform Contribution RatesPaid by Employee Paid by Employer Total Paid by

Employee and EmployerMembership Class Retirement Normal Cost Unfunded

Actuarial LiabilityAdministrative and Education

Health Insurance Subsidy

Total Paid by Employer

Current New1 Current New1 Current New1 Current New1 Current New1 Current New1 Current New1

Regular Class 3% 3% 3.53% 2.91% 2.54% 2.65% 0.04% 0.04% 1.26% 1.66% 7.37% 7.26% 10.37% 10.26%

Special Risk Class 3% 3% 11.01% 11.35% 7.51% 8.99% 0.04% 0.04% 1.26% 1.66% 19.82% 22.04% 22.82% 25.04%

Special Risk Administrative Support Class 3% 3% 4.18% 3.71% 36.59% 27.54% 0.04% 0.04% 1.26% 1.66% 42.07% 32.95% 45.07% 35.95%

Elected Officers’ Class (Judges) 3% 3% 10.10% 11.39% 21.77% 22.62% 0.04% 0.04% 1.26% 1.66% 33.17% 35.71% 36.17% 38.71%

Elected Officers’ Class (Legislature/Cabinet/Public Defender/State Attorney)

3% 3% 6.30% 6.48% 38.66% 37.62% 0.04% 0.04% 1.26% 1.66% 46.26% 45.80% 49.26% 48.80%

Elected Officers’ Class (County and Local) 3% 3% 8.36% 8.48% 33.58% 32.09% 0.04% 0.04% 1.26% 1.66% 43.24% 42.27% 46.24% 45.27%

Senior Management Service Class 3% 3% 4.80% 4.32% 15.04% 15.41% 0.04% 0.04% 1.26% 1.66% 21.14% 21.43% 24.14% 24.43%

DROP 0% 0% 4.30% 4.10% 6.72% 7.12% 0% 0% 1.26% 1.66% 12.28% 12.88% 12.28% 12.88%1 Effective July 1, 2015.

Legislative Update: Bill Revises Employer Contribution RatesDuring the 2015 special session, the Florida Legislature passed Senate Bill 2512-A (Chapter 2015-227, Laws of Florida), changing employer contribution rates in the Florida Retirement System (FRS), effective July 1, 2015. During the regular session, the Legislature also passed CS/House Bill 565 (Chapter 2015-149, Laws of Florida), authorizing local agency employers to reassess the designation of their positions included in the Senior Management Service Class, effective July 1, 2015.

New Employer Contribution RatesAs shown in Table 1 below, Senate Bill 2512-A changes the normal cost rates, the unfunded actuarial liability rates, and the Health Insurance Subsidy contribution rate. However, no change was made to the 3% contribution rate paid by employees or to the Investment Plan’s administrative and education contribution paid by employers.

Employers pay the same contribution rates for members in both the Investment Plan and the Pension Plan. The new contribution rates provide for full funding of the normal cost of benefits of both plans and provide for full funding of the Pension Plan’s unfunded actuarial liability.

Alerts & Hot TopicsAdditional information about 2015 legislation can be found in the “Alerts & Hot Topics” box on the MyFRS.com. Or call the MyFRS Financial Guidance Line between 9:00 a.m. and 8:00 p.m. ET, Monday through Friday, toll-free at 1-866-446-9377, Option 2 (TRS 711).

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Legislative Update: Bill Revises Employer Contribution Rates, continued

Annual Fee Disclosure StatementAll Investment Plan members will be provided with the latest Annual Fee Disclosure Statement with their 2nd quarter statement mailed the last week of July. New hires also will be mailed a statement with their “New Employee FRS Enrollment Kit.” The Annual Fee Disclosure Statement provides information about the structure of the Investment Plan, administrative and individual expenses, and investment fund information, including performance, benchmarks, and fees and expenses.

The statement will be posted in the “Investment Funds” section of MyFRS.com. We also will email you a copy of the finalized statement as soon as it becomes available. Members with questions about the Annual Fee Disclosure Statement should call the MyFRS Financial Guidance Line between 9:00 a.m. and 8:00 p.m. ET, Monday through Friday, toll-free at 1-866-446-9377, Option 2 (TRS 711).

New Contribution Rates for Optional ProgramsSenate Bill 2512-A also changes the employer contribution rates for optional programs, effective July 1, 2015, as shown in Table 2 below. No change was made to the 3% contribution rate paid by employees.

Table 2: Optional Program Contribution RatesPaid by

Employee Paid by EmployerTotal Paid by Employee and

EmployerOptional Programs2 Contribution Contribution Administrative Cost

Unfunded Actuarial Liability

Current New Current New Current New Current New Current New

State University System Optional Retirement Program

3% 3% 5.14% 5.14% 0.01% 0.01% 2.54% 2.65% 10.69% 10.80%

Senior Management Service Optional Annuity Program

3% 3% 6.27% 6.27% 0% 0% 15.04% 15.41% 24.31% 24.68%

State Community College System Optional Retirement Program

3% 3% 5.15% 5.15% 0% 0% 2.54% 2.65% 10.69% 10.80%

2 Rates for local annuity programs are not listed since those rates are established by local authority, per s. 121.055(1)(b)2., Florida Statutes.

Investment Plan ContributionsNo change was made to the total amount paid into Investment Plan members’ accounts or to the 3% contribution rate paid by employees. The Investment Plan contribution rates will remain the same, as shown in Table 3 below.

Table 3: Investment Plan Contributions

Membership Class Paid by Employee

Paid by Employer3

Total to Employee Account

Regular Class 3% 3.30% 6.30%

Special Risk Class 3% 11.00% 14.00%

Special Risk Administrative Support Class 3% 4.95% 7.95%

Elected Officers’ Class (Judges) 3% 10.23% 13.23%

Elected Officers’ Class (Legislature/Cabinet/Public Defender/State Attorney) 3% 6.38% 9.38%

Elected Officers’ Class (County and Local) 3% 8.34% 11.34%

Senior Management Service Class 3% 4.67% 7.67%3 Paid by employers via the uniform contribution rates specified in Table 1. Built into the

uniform contribution rates is a contribution that funds guaranteed monthly benefits for Investment Plan members who are totally and permanently disabled from all employment.

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2015 Dates 10:00 a.m. to Noon ET 1:00 to 3:00 p.m. ET July 21 Using the FRS to Plan for Retirement Cash and Debt Management: Smart Spending and

Saving for Retirement July 22 Nearing Retirement in the FRS Education Planning: Funding the FutureOctober 20 Using the FRS to Plan for Retirement Investment Planning for Everyone – The BasicsOctober 21 Nearing Retirement in the FRS New Employee Retirement Plan Choice

Employee Workshop WebcastsTo register for any of the financial planning workshop webcasts listed below, FRS-covered employees should call 1-866-446-9377, Option 2 (TRS 711).

2015 Workshop ScheduleEmployer Training Workshop Webcasts

Investment Plan DatesLocation: SBA

September 8, October 7

To register for Investment Plan training, call the toll-free FRS Employer Assistance Line (1-866-377-2121, Option 1) and ask for Marc Mancuso,

Angela Ko, or Scott Jennings.

Pension Plan DatesLocation: Division of Retirement

September 10, October 8

To register for Pension Plan training, email the

Division of Retirement at retirement@dms.myflorida.com or call 1-844-377-1888 (toll-free)

or 850-907-6500 (local).

Financial Planners Not Endorsed by FRSOn January 2, 2014, the FRS Investment Plan began offering members access to a Self-Directed Brokerage Account (SDBA). This option allows members access to different investment choices in addition to the Investment Plan’s investment funds.

It has come to our attention that some members are providing their personal financial planners with trading authorization for their SDBA. Such agreements, which are permissible, are made directly between the member and the financial planner.

Planners have also contacted some FRS agencies offering to assist Investment Plan members with their SDBA. These financial planners are neither affiliated with nor endorsed by the FRS, by Hewitt Financial Services, or by Aon Hewitt, the Investment Plan Administrator. If you are approached by anyone claiming such an association, please notify us via an email to walter.kelleher@sbafla.com.

The FRS has a contract with EY to provide free, unbiased financial planning and counseling services to FRS members. EY does not sell any investment or insurance products and can be reached by calling the MyFRS Financial Guidance Line at 1-866-446-9377, Option 2.

For More Information About Workshops, visit the “Employers” section on MyFRS.com.

2nd Election ReminderTo make a valid 2nd Election, a member must be actively working for an FRS-participating employer and earning salary and service at the time the 2nd Election Retirement Plan Enrollment Form is received by Aon Hewitt or the online election is confirmed. For example, if a member’s last day of work for an FRS-participating employer is July 1 (whether the termination is voluntary or involuntary), the election form must be received by Aon Hewitt, or the online election must be confirmed, prior to 4:00 p.m. ET on July 1. It is not sufficient for a member to return to his or her office after terminating employment to complete a 2nd Election form in person. Such elections will be considered invalid and will be reversed.

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Important New Hire Enrollment DeadlinesPlan enrollment forms must be received by 4:00 p.m. ET on the last business day of an employee’s enrollment deadline month. (See deadlines below.) Enrollment forms must be sent directly to Aon Hewitt, the FRS Plan Choice Administrator, in either of the following ways:• By mail: P.O. Box 785027, Orlando, FL 32878-5027• By fax: 1-888-310-5559

The 4:00 p.m. ET deadline is also applicable to Regular and Special Risk Class members who make their elections electronically on MyFRS.com or by calling the MyFRS Financial Guidance Line at 1-866-446-9377, Option 4 (TRS 711). You should confirm a member’s deadline by reviewing the date on their personalized Benefit Comparison Statement or by calling the FRS Employer Assistance Line at 1-866-377-2121, Option 3.

Employer Resources •MyFRS.com website

•Toll-freeFRSEmployerAssistanceLineat1-866-377-2121

- EY and Aon Hewitt representatives are available from 9:00 a.m. to 8:00 p.m. ET, Monday through Friday, except holidays.

- Division of Retirement staff are available from 8:00 a.m. to 5:00 p.m. ET, Monday through Friday, except holidays.

Enrollment DeadlinesIf Hired in Retirement Plan Choice This Month ... Deadline Is 4:00 p.m. ET on ...

February 2015 July 31, 2015

March 2015 August 31, 2015

April 2015 September 30, 2015

May 2015 October 30, 2015

June 2015 November 30, 2015

July 2015 December 31, 2015

August 2015 January 29, 2016

September 2015 February 29, 2016

October 2015 March 31, 2016

November 2015 April 29, 2016

December 2015 May 31, 2016

January 2016 June 30, 2016

Keep Employees’ Names and Addresses CurrentEncourage your employees to report any changes to their names or mailing addresses to ensure they continue to receive important information from you and the FRS.

Active FRS Pension Plan and Investment Plan members’ information is updated in the FRS database after you submit your agency’s monthly payroll report.

Inactive or retired Investment Plan members can: Make address changes online. For instructions, visit MyFRS.com, click the “?” icon on the home page, then “Retirees” in the gray column, then “How can I change my name or mailing address if retired or terminated from the Investment Plan?” The “Click here for further details” link in the FAQ opens a PDF with the online instructions.

Make name changes by submitting a signed form or letter. The form or letter must be accompanied by a copy of the court order, marriage certificate, or driver license reflecting the member’s new name. Name change requests can be mailed (P.O. Box 785027, Orlando, FL 32878-5027) or faxed (1-888-310-5559) to Aon Hewitt. • To request a name change form, call the toll-free

MyFRS Financial Guidance Line at 1-866-446-9377 and select Option 4 (Aon Hewitt).

• If sending a letter, the letter must include the member’s old name, new name, and last four digits of their Social Security number.

Inactive Pension Plan members can: Make address changes by mailing an address change form to P.O. Box 9000, Tallahassee, FL 32315-9000 or by contacting the Division of Retirement’s Calculations Section at 1-888-738-2252 (toll-free) or 850-488-6491 (in the Tallahassee area).

Retired Pension Plan members can: Make address changes from their FRS Online account or by contacting the Division’s Retired Payroll Section at 1-888-377-7687 (toll-free) or 850-488-4742 (in the Tallahassee area).

FL2Q15 ©2015 MyFRS Florida Retirement System — all rights reserved.