Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Florida Retirement System Funds and Investment Returns Declined with the Economy; the SBA Reports That Its Investment Strategy Is Designed to Withstand Losses

Report 10-19, February 2010




Report Summary

  • Membership in the Florida Retirement System (FRS) is open to all public employers in the state, with school districts (48%) and counties (23%) currently comprising nearly three-quarters of the membership. Members can choose between three retirement plans: the Pension Plan, the Investment Plan, and the Hybrid Plan. The FRS is managed by the Department of Management Services' Division of Retirement and the State Board of Administration.
  • FRS Pension Plan investment returns declined with the economy during the past fiscal year. At the end of Fiscal Year 2008-09, the Pension Plan's rate of return was a negative 19.03%, and the fund decreased by $27 billion from the previous year. Results for the Investment Plan were similar, with a rate of return of negative 15.16% and a decrease in fund assets of $293 million. As of June 30, 2009, the FRS Pension Plan had 88.5% of the monies needed to pay all current and future expected benefits for existing participants and their beneficiaries. However, State Board of Administration managers report that the board's investing horizon is 15 to 30 years and its investment strategy is designed to withstand short-term losses and economic downturns.


Related Reports
  1. During Fiscal Years 2016 Through 2018, Major SBA Fund Returns Exceeded Market-Based Investment Benchmarks Over the Long Term
    Report 19-04 March 2019
  2. Over the Long-term, Major SBA Fund Returns Exceeded Market-Based Investment Benchmarks; FRS Pension Fund Multi-Year Performance Similar to Other States.
    Report 16-06 November 2016
  3. FRS Pension Plan Investment Returns Are Similar to Other Public Pension Funds; SBA Continues to Increase Alternative Investments
    Report 15-05 March 2015
  4. FRS Pension Plan Investment Returns Are Similar to Those of Other States; SBA Is Increasing Alternative Investments
    Report 13-05 February 2013
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Pension, Retirement, Defined Benefit, Defined Contribution, Florida Retirement System