SMS Optional Annuity Plan
The State of Florida Senior Management Service Optional Annuity Program (SMSOAP) provides you with greater control over your retirement plan assets. As a participant in the SMSOAP, you may voluntarily contribute a percentage of your income to your retirement account. Your voluntary and mandatory contributions, combined with the employer contribution, give you a unique advantage in preparing for a secure retirement.
Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
In order to select the SMS Optional Annuity Plan you must be eligible to participate in the Senior Management Service Class. Participation in the Senior Management Service Class shall be compulsory for any member of the Florida Retirement System in a position that has been designated eligible for inclusion in the Executive Service of the State University System or who holds a position as president of a state university, unless such member elects, pursuant to Florida State Statutes, Title X, Chapter 121 §121.35, to participate in the optional retirement program.
For more details on who qualifies as a member of the Senior Management Service Class, please consult your employer or the Florida State Statutes, Title X, Chapter 121.
Each member of the optional annuity program shall contribute an amount equal to the employee contribution required under Florida State Statutes, Title X, Chapter 121 § 121.71. There are three kinds of contributions in the plan: employer contributions, mandatory employee contributions, and voluntary employee contributions. The employer shall contribute on behalf of such employee an amount equal to the difference between 9.27 percent of the employee’s gross monthly compensation and the amount equal to the employee’s mandatory contribution based on the employee’s gross monthly compensation.
The plan provides for full and immediate vesting of all contributions. However, employer-funded benefits are subject to forfeiture if a member is found guilty under certain Florida felony statutes.
All contributions to your plan will be invested in the Portfolio Director® Fixed and Variable Annuity* options you designate. Remember that retirement accounts are long-term investments. The value of the variable options will fluctuate so that your investment values might be worth more or less than the original cost.
Retirement plans and accounts such as 401(a)s, IRAs, 403(b)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. Investment in an annuity within a plan does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.
* Policy Form #UITG-194
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 penalty.
Under Florida law you are not eligible to access your contributions and related earnings in your plan account until you terminate all employment relationships with all participating Florida Retirement System (FRS) employers for three full calendar months except as described below.
You may be eligible to receive, upon request to the Division of Retirement, up to 10 percent of your plan account balance after termination for one full calendar month if the Division determines that you meet normal retirement date requirements.
Even though you are not retired you are eligible to request a refund of your voluntary employee contributions and related earnings after you terminate all employment relationships with all participating FRS employers for three full calendar months.
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.
The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
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.