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Florida Retirement System Funds and Investment Returns Declined with the Economy; the SBA Reports That Its Investment Strategy Is Designed to Withstand Losses, Report No. 10-19, February 2010
 
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  • 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.

Which Government Program Summaries contain related information?

State Board of Administration of Florida
Retirement Benefits Administration

What other OPPAGA-related materials are available?

  • Report No. 16-06 Over the Long-term, Major SBA Fund Returns Exceeded Market-Based Investment Benchmarks; FRS Pension Fund Multi-Year Performance Similar to Other States.,published in November 2016.
  • Report No. 15-05 FRS Pension Plan Investment Returns Are Similar to Other Public Pension Funds; SBA Continues to Increase Alternative Investments,published in March 2015.
  • Report No. 13-05 FRS Pension Plan Investment Returns Are Similar to Those of Other States; SBA Is Increasing Alternative Investments,published in February 2013.
  • Report No. 11-10 Compared to Other States, the Pension Plan Is Better Funded, Incurs Lower Investment Fees, and Has Fewer Trustees; Investment Returns Are Average,published in February 2011.
  • Report No. 10-29 FRS Defined Contribution Plan Costs Are Typically More Predictable; the Fiscal Impact of Requiring New Employees to Enroll in the Plan Is Influenced by Many Factors,published in March 2010.
  • Report No. 10-28 DROP Could Be Improved by Defining Its Purpose, Standardizing Requirements, and Ensuring That Benefits Are Equitably Funded,published in March 2010.
  • Report No. 10-15 Several Options Are Available for Modifying the Florida Retirement System’s Class Structure to Reduce System Costs,published in January 2010.
  • Report No. 09-16 Retirement Fund Investments Decline with the Economy But Still Meet Several Performance Benchmarks; SBA Must Improve Communication with Its Stakeholders,published in March 2009.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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