The FRS Investment Plan

A plain-English, educational overview for Florida Retirement System members

What Is the FRS Investment Plan?

The FRS Investment Plan is a defined contribution retirement plan. Instead of a guaranteed monthly benefit, your retirement value is based on:

• Employer contributions
  

• Any member contributions (if applicable)
  

• Investment performance over time

Your retirement benefit depends on how much is contributed and how the investments perform.

How the Investment Plan Works

With the Investment Plan:

• Contributions are made to an individual retirement account in your name
  

• Funds are invested in a selection of available investment options
  

• Your account balance changes over time based on market performance

Unlike the Pension Plan, the Investment Plan does not provide a predetermined monthly benefit.

Who Typically Uses the Investment Plan?

The Investment Plan may be considered by members who:

• Expect to change employers during their career
  

• Prefer more control over investment decisions
  

• Want portability if they leave FRS employment
  

• Are early in their career and building long-term savings

Each situation is different, and no single plan is right for everyone.

Vesting and Ownership

Vesting refers to when you gain full ownership of employer contributions.

Key points to understand:

• Vesting requirements depend on your enrollment date
  

• Once vested, your account balance belongs to you
  

• If you leave FRS employment before vesting, employer contributions may be forfeited

Understanding vesting rules is important before making career or retirement decisions.

What Happens If You Leave FRS Employment?

If you separate from FRS-covered employment, you may have options such as:

• Leaving funds invested
  

• Rolling funds into another retirement account
  

• Taking distributions (subject to rules and potential taxes)

Decisions made at separation can affect long-term retirement outcomes.

Investment Risk and Retirement Planning

Because the Investment Plan depends on market performance:

• Account values may increase or decrease
  

• Investment choices affect long-term results
  

• Retirement income is not guaranteed

Understanding risk, time horizon, and retirement timing is an important part of planning.

Investment Plan vs. Pension Plan — Key Differences

Many FRS members compare the Investment Plan and Pension Plan when making elections.

Common differences include:

• Predictable lifetime income vs. account-based balance
  

• Market risk vs. defined benefit
  

• Portability vs. long-term service incentives

Comparisons should be made carefully, especially before irreversible elections.

Common Questions FRS Members Ask

• How long should I stay in the Investment Plan?
  

• Can I switch plans later?
  

• How does the Investment Plan affect retirement income planning?
  

• What happens to my account if I retire or change jobs?

These questions are common — and worth reviewing before making decisions.

Next Steps — Review Your Retirement Options

Understanding the Investment Plan is one part of retirement planning.

If you’d like help reviewing how the Investment Plan fits into your broader retirement timeline, you can:

or

These tools are designed to help Florida public employees make informed decisions before elections become final.