Miami-Dade County provides retirement benefits for eligible employees through the Florida Retirement System (FRS). Enrollment is automatic for full-time and part-time employees.
The FRS is qualified under Section 401(a) of the Internal Revenue Code and provides a defined benefit (FRS Pension Plan) and a defined contribution plan (FRS Investment Plan) option. Under the defined benefit plan, for every month an employee receives a paycheck, they receive one month of service credit; if the employee participates in the defined contribution plan a contribution is made to their account and the employee is responsible for managing their investments.
In order to qualify for the retirement benefit, an employee must be vested. Effective July 1, 2011, the legislature amended the retirement plan and redefined normal retirement age and the vesting requirements for new members. In addition, FRS members must contribute 3 percent of their salary towards their retirement benefit, on a pre-tax basis (the salary is reduced by the amount of the employee contribution before determining the federal income tax deduction); the remainder is paid by the employer. Members participating in the Deferred Retirement Option Program (DROP) and re-employed retirees who do not qualify for renewed membership are not required to make the 3 percent contribution
Florida Retirement System (FRS)