Jackson Health

Jackson Health System FRS and Public Health Trust

The Jackson Health System has two different retirement programs based on your hire date. Employees Hired Prior to January 1st of 1996 are members of the FRS where they will benefit from either the Pension plan, or investment plan. Employees hired after January 1st of 1996 will automatically be enrolled into the Public Health Trust plan which is a defined benefit plan for all members. Below is a summary of both plans:

Florida Retirement System Plans

  • The FRS Pension Plan is a defined benefit plan. The employee contributes 3% of their salary, and is able to retire at either 30 years of service, or age 62. Whichever comes first. The plan formulas works as follows: Years of service worked x 1.6% x average of total compensation for employees highest five years of salary = employees annual retirement benefit. For example. 30 Years of service x 1.6% (48%) x Average salary of $60,000 = $28,800 annual benefit at retirement
  • The FRS Investment Plan is a defined contribution plan. The employee contributes 3% of their salary, and the employer contributes 8.3% as well. The funds are then invested into a series of different mutual funds that the employee chooses. There are currently 19 default funds called the "core" funds, and there is also a Self-Directed Brokerage Account (SDBA) which has thousands more options to choose from. You can contact the FRS directly for guidance and advice on the 19 core funds, but unfortunately they are unable to provide that same assistance for the options available in the (SDBA). This is a very important part of the plan's growth. The way the funds grow in the plan can have a tremendous impact on the total account value for the employee at retirement age. For example, imagine your annual compensation is $60,000, and you work in your position for 30 years. Your annual 3% contribution would be $1,800. Your employer's 8.3% contribution would be $4,980. The total annual contribution would be $6,780. Over 30 years, the total contribution amount from you and your employer would equal $203,400. Now let's assume that over your 30 year career, your investment fund you have chosen earns an average 6% annually. At retirement, your total account value would be $536,014. That means $332,614 of your total account value, or the majority 62% of your total retirement benefit would come from interest growth, and not contribution. Knowing how and where your investment plan funds are invested can be a critical part of the income planning process. If you have questions about how your investment funds are allocated, schedule a 15 minute meeting with one of our financial professionals who can help you learn more about your specific goals and investments.

Public Health Trust

  • The PHT plan is a defined benefit plan. Just like the FRS Pension Plan, the member contributes 3% of their salary, and eligibility for full benefit is reached at either 30 years of service, or age 65. The formula for calculating the pension benefit at retirement age is also the same as the FRS Pension Plan, taking years of service, a 1.6% multiplier, and average of highest *five years of compensation. 

*Members hired after 2012 will have their average of highest compensation based on 8 years, not 5.

This hypothetical example is for illustrative purposes only, and its results are not representative of any specific investment or mix of investments. Actual results will vary