How is my retirement benefit going to be affected by a 5 percent pay reduction?
Florida Retirement System (FRS) calculates the amount of your retirement benefits based on the average of the five highest years of creditable earnings. For employees eligible and enrolled for health insurance benefits, the 5 percent base salary contribution towards the cost of health insurance will be payroll deducted pre-tax. Therefore, there will be no impact on your pension benefit. However, employees not eligible for insurance will have a negative money adjustment equivalent to 5 percent of their base salary. The 5 percent base salary reduction will reduce your pension benefit if included as one of your five highest years of earnings.
