Human Resources

Benefits

• How is my retirement benefit going to be affected by a 5 percent pay reduction?
• Will I be required to pay the 5% base salary contribution towards the cost of health insurance if I am on an unpaid leave of absence (LOA)?
• I am currently paying for dependent health insurance. Is the 5 percent contribution in addition to the dependent premiums I am already paying?

How is my retirement benefit going to be affected by a 5 percent pay reduction?

Florida Retirement System (FRS) calculates the amount of your retirement benefits based on the average of the five highest years of creditable earnings. For employees eligible and enrolled for health insurance benefits, the 5 percent base salary contribution towards the cost of health insurance will be payroll deducted pre-tax. Therefore, there will be no impact on your pension benefit.

However, employees not eligible for insurance will have a negative money adjustment equivalent to 5 percent of their base salary. The 5 percent base salary reduction will reduce your pension benefit if included as one of your five highest years of earnings.

Will I be required to pay the 5% base salary contribution towards the cost of health insurance if I am on an unpaid leave of absence (LOA)?

If you are eligible for insurance, yes. You will be billed for the amount to continue your health coverage, including the 5 percent base salary contribution. Your health insurance coverage will be cancelled for nonpayment if you fail to pay the 5 percent in a timely manner while on leave of absence (LOA). 

If your coverage is cancelled for non-payment, upon your return to work you will be defaulted into the AvMed Low Option HMO, with a break in coverage. If you are not eligible for insurance you will not be billed for the insurance contribution while on a leave of absence.

I am currently paying for dependent health insurance. Is the 5 percent contribution in addition to the dependent premiums I am already paying?

Yes. The 5 percent insurance contribution is in addition to any dependent premiums you are currently paying, or the single POS premium you may be paying.

Back to Top Page Last Edited: Thu May 12, 2011 6:31:18 PM