Regular Class, Elected Officials, and Senior Management Service Class members all have unique planning needs. If you started before July 1, 2011 when some new rules were enacted, the FRS uses the following guidelines:

For regular class members, after 30 years, you will have earned just 48% (1.6 multiplier X 30 years) of your best 5 year average. Can you live on half of what you are making now? Social Security and personal savings can help to fill the gap if you have planned well. Sometimes the DROP funds, when used correctly, can be an important element of your retirement income.

Are you an Elected Official? While your multiplier is higher than a regular class member, your vesting schedule and number of years to be eligible to receive Normal Retirement Benefits is still 30 years, if you remain in the Pension (Defined Benefit). Because of the uncertainty of elections, the Investment Plan with its 1 year vesting schedule could provide some future benefits should you leave office and want to have access to your retirement funds.

For the Senior Management Service Class, while your multiplier is 0.4% higher (2.0% vs. 1.6%) when compared to the Regular Class, this only gives you 60% of your pre-retirement income when you meet normal retirement requirements. Again, you will have a gap to fill to have the same income in retirement.

The facts remain, even though you might have different Multipliers, everyone has unique needs based on their own personal financial situation. This difference requires an in-depth analysis to determine the answers to best fit your needs. With this understanding, a solution can be crafted that gives you peace of mind and clarity in your decisions.