Employee Benefits in Florida, Retirement Planning, and the Law

Florida Retirement Planning
Retirement is something that most people struggle with, and retirement planning can seem to be a simple decision, yet most people fail to plan their retirement properly. You have to do a lot of research if you want to enjoy your retirement days in Florida. Most people end up only having social security after retirement without receiving any pension, or even social security in some cases, and this isn’t enough to take care of aged people. There is the need to have a backup investment or add a pension to your income after retirement.
Many workers plan to work for the government, state, or companies that offer pension after retirement to maintain a proper lifestyle after retirement. As a Florida resident, you can enroll in FRS (Florida Retirement System) if you work in a state or county government office, school district, or water management district and other working sectors that allow you to do so. When it comes to retirement options, you currently have two options; you should either have an investment plan or a pension plan.
How Much Do You Get for Each Plan?
The pension plan is your benefit plan, and it is calculated based on the number of years you’ve spent working with FRS, this is multiplied by 1.6 and again multiplied by your highest salary years on average. As we already know, a lot of people earn their most top salary in the last years of their working career, generally as a rule of thumb after working for 30 years in an FRS job, the retirement benefit will be 48% of your salary before retirement. This pension plan has been around for almost 40 years, and it’s the best plan for those that are working with the FRS, older employees, and individuals that can’t control their retirement plan.
The second retirement plan is the FRS investment plan; this is considered as the contribution plan. The FRS investment plan has been around since 2002, and it’s aimed at mobile and short service employees. Both you and your employer will contribute to this plan and is defined by law, but the benefit you’ll receive will depend on how your investments perform. Investment plans involve cumulative employee and employer contributions, gains and losses, and dividends.
Retirement benefit from this plan isn’t fixed because it’s controlled by a lot of factors, investment plans also don’t have to be paid on a fixed period, you have the freedom to choose your own payment interval, and you can be paid yearly or monthly.
Which Retirement Plan Is the Best?
It all comes down to your needs; you should figure out your plans after retirement, get a program that can take of all your essential needs, especially when it comes to a health issue. Well all know that as we become older, we end up facing a lot of health problems, your plan should be enough to take care of your health expenses. Above all, you should talk to a financial advisor or FRS representative that can help you choose the right investment plan. Both types of projects have their advantages and disadvantages. If you don’t want a lot of risks, the investment plan isn’t a good option for you because the value of your investments can decrease over time, and your income is affected. If you also don’t have much experience when it comes to making investment decisions, you’ll end up losing a lot of money. If you want a guarantee of been paid monthly, you should stick to the pension plan because it’s more secure.
Part-Time Employees – Are They Qualified to Receive Benefits?
Most of the time, part-time employees receive statutory benefits like social security, employee compensation insurance, and short-term disability insurance. For small business owners, they can craft their policies that govern part-time employee benefits. Whether you’re a full-time or part-time employee, you should invest as much as you can, learn more about investments that will give you the highest return. It’s a good idea to have some investments even though you’re receiving your pensions because as you grow older, you don’t know the type of health problems that might come to you.
Retirement Planning and the Law
So, what does retirement planning have to do with the law? When legal cases settle, often, our clients get lump-sum settlements – a large amount of money immediately. Converting that to an annuity often helps our clients use the money wisely over a more extended period. Medical bills and the like can mount quickly.
Generally, your retirement assets should not be at risk if your employer declares bankruptcy. Federal law requires that retirement plans fund promised benefits adequately and keep plan assets separate from the employer’s business assets. The employers’ creditors cannot claim retirement plan funds
It is not required, and often not necessary, but when it is, we can work with the client to make sure they are taken care of in their future. At Massey & Duffy, we are there for our clients.
The pension plan is your benefit plan, and it is calculated based on the number of years you’ve spent working with FRS, this is multiplied by 1.6 and again multiplied by your highest salary years on average. As we already know, a lot of people earn their most top salary in the last years of their working career, generally as a rule of thumb after working for 30 years in an FRS job, the retirement benefit will be 48% of your salary before retirement. This pension plan has been around for almost 40 years, and it’s the best plan for those that are working with the FRS, older employees, and individuals that can’t control their retirement plan.
The second retirement plan is the FRS investment plan; this is considered as the contribution plan. The FRS investment plan has been around since 2002, and it’s aimed at mobile and short service employees. Both you and your employer will contribute to this plan and is defined by law, but the benefit you’ll receive will depend on how your investments perform. Investment plans involve cumulative employee and employer contributions, gains and losses, and dividends.
Retirement benefit from this plan isn’t fixed because it’s controlled by a lot of factors, investment plans also don’t have to be paid on a fixed period, you have the freedom to choose your own payment interval, and you can be paid yearly or monthly.

Which Retirement Plan Is the Best?

It all comes down to your needs; you should figure out your plans after retirement, get a plan that can take of all your important needs especially when it comes to a health issue. Well all know that as we become older, we end up facing a lot of health problems, your plan should be enough to take care of your health expenses. Above all, you should talk to a financial advisor or FRS representative that can help you choose the right investment plan. Both types of plans have their own advantages and disadvantages. If you don’t want a lot of risks, the investment plan isn’t a good option for you because the value of your investments can decrease over time, and your income is affected. If you also don’t have much experience when it comes to making investment decisions, you’ll end up losing a lot of money. If you want a guarantee of been paid monthly, you should stick to the pension plan because it’s more secure.
Part-Time Employees – Are They Qualified to Receive Benefits?
Most of the time, part-time employees receive statutory benefits like social security, employee compensation insurance, and short-term disability insurance. For small business owners, they can craft their policies that govern part-time employee benefits. Whether you’re a full-time or part-time employee, you should invest as much as you can, learn more about investments that will give you the highest return. It’s a good idea to have some investments even though you’re receiving your pensions because as you grow older, you don’t know the type of health problems that might come to you.
Retirement Planning and the Law
So, what does retirement planning have to do with the law? When legal cases settle, often, our clients get lump-sum settlements – a large amount of money immediately. Converting that to an annuity often helps our clients use the money wisely over a more extended period. Medical bills and the like can mount quickly.
Generally, your retirement assets should not be at risk if your employer declares bankruptcy. Federal law requires that retirement plans fund promised benefits adequately and keep plan assets separate from the employer’s business assets. The employers’ creditors cannot claim retirement plan funds
It is not required, and often not necessary, but when it is, we can work with the client to make sure they are taken care of in their future. At Massey & Duffy, we are there for our clients.

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