Well, it's that time of the year once again. Back to School! I know, Summer just went by way too fast once again. Well, before you get neck deep in lesson plans, try to devote a little time to your personal finances. Hopefully you took some of my advice a couple months ago and didn't find yourself scraping pennies together to get those end of summer bills paid.
If you haven't heard, there have been a few changes to the Florida Retirement System thanks to State Bill SB7024*. As of July 1, 2023, FRS (the employer) is increasing contributions to the Investment plan by 2%, bringing the total employer contribution to 8.3%. That's a 32% increase! Also, the HIS (health insurance subsidy) is also seeing an increase of 50% from $5 per year of creditable service to $7.50 per year of service. For those in the pension plan, if you elect to go into DROP, you can now delay retirement up to 8 years and the interest rate in DROP will increase from 1.3% to 4% while the funds are accruing.
To see how this may affect your personal retirement planning give us a call!