The Daytona State College District Board of Trustees has authorized the provision of a Florida Community College Optional Retirement Program (CCORP). Under this plan, annuity contracts providing retirement and death benefits may be purchased by the college on behalf of eligible employees. Participation in the CCORP is in lieu of participation in the Florida Retirement System (FRS).
Participation in the optional retirement program is limited by state guidelines to full-time employees who are otherwise eligible for membership in the Regular Class of the Florida Retirement System classified as:
- Instructional; or
- Executive Management, Instructional Management, or Institutional Management, if the recruiting to fill a vacancy in the position is to be conducted in the national or regional market, and the duties and responsibilities of the position include: a.) the formulation, interpretation, or implementation of policies; or b. ) the performance of functions that are unique or specialized within higher education and that frequently involve the support of the mission of the college.
Employees eligible for the Senior Management Service Class or the Teacher’s Retirement System of the Florida Retirement System are not eligible for the CCORP.
Each of the retirement plans is designed to provide you with income during your retirement years, but each plan does that in a different way: the FRS defines a retirement benefit level that you can expect to receive while the CCORP sets aside funds to purchase an annuity on your behalf and the investment growth of those funds determines your retirement benefits. You will have Social Security coverage under either retirement plan.
The Florida Retirement System is a defined benefit pension plan sponsored by the State of Florida. Each month the college contributes a percentage of your earnings to the FRS. Upon completion of 6 years of creditable service, you are vested in the plan and will receive a lifetime monthly income from the plan when you are eligible to retire. The amount you receive will be based on your age, your years of creditable service, the value of each year of service, and your average final compensation when you retire.
The Optional Retirement Program is a defined contribution pension plan. Each month, the college contributes a percentage of your earnings to an annuity on your behalf. Regardless of your length of service, you will receive a lifetime monthly annuity income at retirement that will be based on the amount of funds, the type of annuity which you have selected, and the investment earnings or losses of those funds. There is no guaranteed benefit and the possibility of loss of funds does exist.
You may wish to continue participation in the FRS retirement plan during your remaining working years if:
- you have already established membership in FRS through the college
- you have established membership through other eligible employers
- you are already vested in the FRS
If you elect to participate in CCORP now, any FRS service remains credited.
You may wish to select the CCORP if:
- you are young with most of your career ahead of you
- you have never participated in FRS
- you briefly participated in FRS
- you do not expect to work 10 years to vest under FRS
- you still have a number of years for compounded investment earnings to accumulate and add significantly to your ultimate retirement annuity.
Although this accumulation will not be as great if you have only a few years remaining
before retirement, any funds accumulated under CCORP will be payable to you at retirement,
regardless of your length of service.
It is important to know that the retirement plan choice you make is irrevocable as long as you continue in eligible employment. Neither the college nor approved providers assume liability for the choice you make. You should consult a qualified financial consultant before making your final decision.
Daytona State College contributes funding on behalf of each program participant according to the plan chosen and state mandated guidelines.
An example based on the rates effective 7/1/96 is shown below:
10.43% to annuity chosen
6.67% normal cost
0.00% to HIS Contribution Rate
1.11% to Health Insurance Subsidy Contribution Rate
0.05% fee for PEORP Administrative Expense Plan
7.83% TOTAL Employer Contribution Rate
For more information, call the Benefits Office at (386) 255-8131, extension 3082 or call any of the approved CCORP provider companies listed below.
Jefferson National - John McAvoy - (352) 372-1802
MetLife - John McLeod - (800) 492-3553, ext. 2444
TIAA-CREF - Larry Shipp - (877) 267-4510, ext. 5103
VALIC - Joe Selter, CFP - (386) 738-7309