When you join the Florida Retirement System (FRS), you start earning valuable benefits toward your retirement. But here’s a detail many newer employees overlook: vesting.
Vesting is the point at which you’re officially entitled to a future benefit from FRS — even if you leave public service before reaching retirement age. Understanding when and how you become vested is critical, because leaving too early can mean walking away from benefits you thought you had earned.
Vesting means you’ve earned the right to receive a benefit from FRS in the future, provided you meet all other requirements for retirement.
The rules depend on your hire date and plan.
For the Pension Plan:
Hired before July 1, 2011: You are vested after 6 years of service.
Hired on or after July 1, 2011: You are vested after 8 years of service.
For the Investment Plan:
Once vested, you’re entitled to a benefit from either the Pension Plan or the Investment Plan, depending on which you chose.
Important Note: If you transferred a benefit from the Pension Plan into the Investment plan, the transferred balance follows the pension plan vesting schedule of either 6 or 8 years.
Pension Plan Members
If you leave FRS employment before vesting, you cannot claim a future pension — even if you contributed for several years.
If you are vested, your pension will still be payable once you reach the normal retirement age/service requirements, even if you no longer work for the state.
Investment Plan Members
Employer contributions don’t become yours until you are vested.
If you leave before vesting, only your own contributions and any investment earnings on them are yours to keep.
Once vested, both your contributions and the employer’s contributions (plus earnings) are fully yours.
Example 1: Not Vested (Pension)
An employee hired in 2015 who leaves after 5 years forfeits has no pension rights, but can claim back individual contributions paid into the pension plan back.
Example 2: Vested (Pension)
An employee hired in 2009 who leaves after 7 years is vested and eligible for a future pension benefit once they reach retirement age.
Assuming contributions equal benefits. Your paycheck deductions don’t automatically mean you’ll get a pension — vesting must be met first.
Leaving too early. Some members take another job just before reaching vesting status, losing years of potential benefits.
Not tracking hire dates. Your hire date determines whether the 6- or 8-year vesting rule applies.
Check your years of service regularly on MyFRS.com or with your HR department.
Understand your retirement plan choice (Pension vs. Investment) and how vesting applies to it.
Time career moves carefully. If you’re close to vesting, consider whether staying in service longer may be worthwhile.
Vesting is a simple but powerful concept. It marks the point where your years of service officially lock in benefits that could support you for decades to come. Missing that mark — by months or even days — can make a major difference in your retirement outcome.
For FRS members, knowing when you’ll be vested, and how it impacts your Pension Plan or Investment Plan, is an essential part of building a retirement plan.