State of Florida Social Security Alternative Plan
As an Other Personal Services (OPS) employee, the State of Florida Social Security Alternative Plan affords you an excellent opportunity to help accumulate money for a secure retirement. You contribute 7.5% of your compensation to this tax-deferred plan instead of paying FICA (Social Security) tax to the government. Your account benefits from the opportunity for tax-advantaged growth.
This is not your plan document. The administration of each plan is governed by the actual plan document. If discrepancies arise between this summary and the plan document, the plan document will govern.
All State of Florida OPS employees are required to participate in this plan and are automatically enrolled. Reference Internal Revenue Code Section 3121(b)(7)(F) and state Statute 110.1315 for details regarding participation.
You contribute a mandatory 7.5% of your compensation to the State of Florida Social Security Alternative Plan. Unless you choose otherwise, your contributions will be invested in age-appropriate target date funds. If you want to save more than 7.5%, you can participate in the State of Florida 457(b) Deferred Compensation Plan by calling 1-877-299-8002 or by visiting the plan website at www.myfloridadeferredcomp.com.
The principal value of an investment in a target date fund is not guaranteed at any time including at or after the target maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date.
Your contributions will be deducted from your paycheck and automatically directed to AIG Retirement Services. You can visit this website at any time to make changes to your investment allocations and to make your beneficiary designations.
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal tax penalty.
Generally, depending on plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
The following are some events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:
In addition, you must begin taking distributions once you reach age 72 (age 70½ if born before July 1, 1949) or you retire, whichever is later.
Your plan offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on plan provisions, your withdrawal options include:
Generally, income taxes must be paid on all amounts you withdraw from your plan.
Consult your financial professional for more specific information.
New employees hired after 02/01/2017 will have their contributions automatically invested in the age-appropriate target date funds. However, you decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under the State of Florida Social Security Alternative Plan.
This plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind that investing involves risk, including possible loss of principal.
* Policy Form GFA-315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.
The gross annual administrative fee assessed on assets in the plan is $55 per participant with an account balance equal to or greater than $600. This may be offset, in whole or in part, by reimbursement received from mutual fund companies. Additionally, mutual fund annual operating expenses apply based on the funds chosen. Mutual fund expenses and fund reimbursements are described in the prospectus.
To view or print a prospectus, access “Prospectuses and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.