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The Gabor Agency is dedicated to helping you
understand and choose from a comprehensive list of benefit options designed especially for employees of the University of Florida.
In its 7th decade of service,
Gabor representatives are on campus daily to help you plan for retirement and beyond.
In
partnership with your Human Resources department, the Gabor Agency is pleased
to offer you the following employee benefits:
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Disability Insurance |
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State
Retirement Options |
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Supplemental
Retirement Options |
Dreaming, Building, Protecting.
Group
Disability Insurance:
The Agency is proud to
represent the Florida State University System group disability plan.
Underwritten by The Standard Insurance Company this program links all eleven State
universities and provides disability insurance that will protect you in the
event a covered illness or injury prevents you from working.
Protecting
the income you earn can save your family from financial disaster. The American
Journal of Medicine estimates every 90 seconds, someone files for bankruptcy in
the wake of a serious illness. If you are in the first 60 days of employment or
during an open enrollment we encourage you to take advantage of this important
protection.
Looking forward to the Future.
Within
the first 90 days of employment, you must make a decision about your state
retirement. Most university faculty and administrators have three options: ORP,
FRS pension and FRS investment plan. If ORP membership is not chosen with the
first 90 days, membership will be defaulted to the Florida Retirement System
(FRS) Gabor representatives are on campus daily to advise you on which options
will best meet your retirement needs.
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Due to changes made
to the State Retirement System by the Florida Legislature, effective July 1,
2011, the employing college or university contributes 7.42% of the employee's
bi-weekly gross salary on behalf of the employee. The employee is required to contribute
a minimum of 3% of their gross salary and may contribute an additional amount
not to exceed 7.42%.
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Option 1
State
University System Optional Retirement Plan (ORP) offers
full and immediate vesting of all tax-deferred contributions submitted to the
state approved participating companies on behalf of the participant. The ORP is an employer
sponsored retirement savings plan available to eligible employees through
payroll deduction.
The Gabor Agency
offers variable annuity products through participating companies in the ORP
Program, allowing you to control your investment portfolio.
Option 2
FRS
Pension Plan is a defined benefit plan designed for
longer-serving employees because it grows slowly at first and takes a steep
climb near retirement age. The plan pays a guaranteed lifetime monthly benefit
using a formula based on your salary and service while working for an FRS
employee. Your employer provides the majority of your FRS retirement based on
a fixed percentage of gross salary as determined by the state legislature. A
mandatory 3% pre-tax contribution is deducted from your paycheck and deposited
into the retirement trust fund which is managed by the State Board of
Administration. Vesting occurs after 8 years of service.
Deferred
Retirement Option Program (DROP) is
available to those who are vested and eligible for normal retirement as an
active member of the FRS Pension Plan. DROP allows you retire without
terminating your employment for up to 60 months while retirement benefits
accumulate. Interest is earned on benefits and compounded monthly at an
effective rate of 1.3% for DROP dates on or after July 1, 2011, 6.5% for prior
dates.
Within 60 days after DROP participation
ends, the employee must choose a distribution method. Gabor representatives
are available to help DROP and FRS participants with their retirement options
and to manage their funds.
Option
3
FRS
Investment Plan is a defined contribution plan, in which
your employer contributions are defined by law, but your ultimate benefit
depends on the amount of money deposited to your account and its growth over
time. A mandatory 3% pretax contribution is deducted from your paycheck and
deposited into your retirement account. You decide how the funds are allocated,
and your benefit is vested after one year of service.
Supplemental Retirement Options
403(b) Retirement
Savings Plan
A 403(b) is an employer
sponsored retirement savings plan. The Traditional and Roth 403(b) plans differ
mainly as to when contributions, earnings and withdrawals are taxed.
Traditional
403(b) Retirement Savings Plan
Similar to a 401(k), a Traditional 403(b)
is an employer sponsored retirement savings plan. Contributions are deducted
directly from your paycheck, before taxes are applied, thereby lowering
your taxable income. Lower taxes means you keep more of your money. Your
contributions grow on a tax-deferred basis allowing your plan to compound at a
greater rate than a taxable account.
Once you become eligible to withdraw
these contributions and their earnings, the withdrawal will be taxable.
Normal IRS rules regarding withdrawals
and plan eligibility apply.
Roth 403(b)
A Roth 403(b) is an employer sponsored
retirement savings plan. Contributions are deducted directly from your
paycheck, after taxes, meaning you'll never have to pay federal income taxes
on your contributions or earnings, even when you
withdraw the money.
Normal IRS rules regarding withdrawals
and plan eligibility apply.
457 Deferred
Compensation Plan
Higher education employees
may participate in a 403(b) Tax-Deferred Plan and 457(b) Deferred Compensation
Plan at the same time, allowing for additional tax-deferred retirement savings.
A 457 Deferred
Compensation plan is a State of Florida sponsored retirement savings plan which
allows employees to make pre-tax contributions through payroll deduction. Once
you become eligible to withdraw these contributions and their earnings, the
withdrawal will be taxable.
You are subject to the
normal IRS rules regarding withdrawals and plan eligibility.
Non-Employer Sponsored Financial Plans
Individual Retirement
Accounts (IRAs)
An Individual Retirement
Account (IRA) is a program you set up to prepare for retirement. Gabor offers
two types of IRAs: Traditional IRAs and Roth IRAs.
Traditional IRA
A Traditional IRA allows you to save
pre-tax dollars for retirement. Your contributions are made before taxes are
calculated on your income and you don't pay taxes until you withdraw money.
Roth IRA
A Roth IRA allows you to contribute
after-tax dollars into an individual retirement savings plan. Contributions
are made after taxes, meaning you'll never have to pay federal income taxes
on your contributions or earnings, even when you
withdraw the money.
Normal
IRS rules regarding withdrawals and plan eligibility apply.
College Savings Plan
A college savings plan is
a tax-advantaged investment vehicle designed to encourage saving for future
higher education expenses of a designated beneficiary.
There are two types of
College Savings plans: prepaid and savings.
Prepaid plans:
Tuition credits may be purchased at present value for use in the future when
tuition may be higher. Performance is based upon tuition inflation.
Savings plans:
Growth is based upon market performance of the underlying investments.
Mutual Funds
Gabor offers a wide range
of mutual funds to employees who wish to contribute either to their 403(b)
account, IRA, or non-qualified investment portfolio.
Additional Resources
As always, your Gabor
representative is on campus daily and available to answer any questions you may
have about your retirement benefits. Click
here to have a Gabor
representative contact you.
Click here for UF Benefits Info Page
Click here for UF Human Resources Page
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