FRS Second Election and Plan Transfer: What Happens to Benefits When a Member Dies

Florida FRS members who used the Second Election to switch between the Pension Plan and the Investment Plan created a hybrid account history that makes survivor claims more complicated than a straightforward single-plan filing. If the deceased exercised a Second Election at some point during their career, you need to understand which plan holds the assets and where to file.

What the Second Election Does

Under Section 121.4501 of the Florida Statutes, FRS members are allowed a one-time Second Election to switch from the Pension Plan to the Investment Plan, or from the Investment Plan to the Pension Plan. When a member switches plans, their accumulated benefits are transferred: Pension Plan service credits are converted into a transfer amount deposited into the Investment Plan, or Investment Plan account balances are used to buy back service credits in the Pension Plan.

This transfer creates a hybrid history. The member has service time in one plan and a financial transfer into another. When that member dies, the surviving family needs to determine which plan governs their benefits at the time of death — not which plan the member was originally enrolled in.

Where the Benefits Live After a Transfer

The plan the member was in at the time of death controls the survivor claim path.

Transferred to Investment Plan: If the member left the Pension Plan and moved to the Investment Plan via Second Election, the entire account balance — including the transferred Pension Plan funds — is now an Investment Plan account administered by the State Board of Administration and Alight Solutions. Survivor claims go through Alight Solutions (1-866-446-9377, Option 4), not the Division of Retirement. Distribution rules for non-spouse beneficiaries (the 5-year rule, 1-year election deadline) apply to the full balance.

Transferred to Pension Plan: If the member moved from the Investment Plan to the Pension Plan, their Investment Plan balance was used to purchase creditable service years in the Pension Plan. The member's account is now a Pension Plan account administered by the Division of Retirement. Survivor benefits follow Pension Plan rules: vesting thresholds, Option 3 joint annuitant elections, contribution refunds, and ILOD rules.

In either case, there's only one active account to claim against — the plan the member ended up in after the transfer. The original plan no longer holds any assets for that member.

Complications to Watch For

Vesting recalculation: When a member transfers from the Investment Plan to the Pension Plan, the purchased service credits count toward vesting. But the vesting threshold depends on their enrollment tier (Tier I: 6 years, Tier II: 8 years), and the transferred service may or may not push them over the line. Ask the Division of Retirement to confirm the member's total creditable service and vesting status.

Incomplete transfers: In rare cases, a Second Election may not have been fully processed before the member's death. If paperwork was submitted but the transfer wasn't complete, the Division of Retirement and SBA need to determine which plan holds the assets. Call both agencies to confirm where the account stands.

DROP after a Second Election to Pension Plan: A member who transferred back to the Pension Plan and later entered DROP has both a monthly pension benefit and a DROP accumulation account. Both are administered by the Division of Retirement. The survivor claim involves two components: the Option 1-4 monthly benefit continuation and the DROP balance distribution via Form FST-11g.

How to File

Start by calling the MyFRS Financial Guidance Line at 1-866-446-9377. The counselors can look up the member's account and confirm which plan the member was in at the time of death, whether a Second Election was executed, and whether the transfer was fully completed. From there, they'll direct you to the correct agency and claim forms.

If you're not sure whether a Second Election happened, check the member's annual FRS benefit statements, MyFRS.com online account records, or pay stubs. The plan type (Pension Plan or Investment Plan) should be clearly indicated on recent statements.

The FRS Survivor Benefits Guide walks through the Second Election claim scenarios with the specific forms and contact paths for each plan, including what to do when a transfer was in progress at the time of death.

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