The Florida Legislature
OPPAGA script logo
Office of Program Policy Analysis and Government Accountability

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, Report No. 10-29, March 2010
Full report in PDF format

Most states (39) provide only defined benefit retirement plans to their employees, although defined contribution plan costs are more predictable. The Florida Legislature has considered several proposals to close the defined benefit Pension Plan and require all new employees to join the defined contribution Investment Plan. This action would provide increased certainty in the level of required employer contributions to the FRS over time and may reduce certain costs. However, closing the Pension Plan would increase funding requirements for those employees who remain in the plan. Future costs of the two plans are dependent on many variables, and the Legislature has requested an actuarial study to estimate these costs.

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. 19-04 During Fiscal Years 2016 Through 2018, Major SBA Fund Returns Exceeded Market-Based Investment Benchmarks Over the Long Term,published in March 2019.
  • 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. 10-28 DROP Could Be Improved by Defining Its Purpose, Standardizing Requirements, and Ensuring That Benefits Are Equitably Funded,published in March 2010.
  • Report No. 10-19 Florida Retirement System Funds and Investment Returns Declined with the Economy; the SBA Reports That Its Investment Strategy Is Designed to Withstand Losses,published in February 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.

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:

Reports  |  Home