What is the law concerning retirement benefits?

In Florida, the law concerning retirement benefits is largely set by the type of retirement plan an employer offers. There are 3 main types of retirement plans in Florida—defined benefit plans, 401(k) plans, and 403(b) plans. To provide retirement benefits, employers in Florida must offer one of the 3 types of plans. Defined benefit plans are employer-sponsored retirement plans that guarantee a monthly income. Generally, employers must contribute a specific percentage of employees’ salaries to the plan. With this type of plan, employees will receive the same amount of money regardless of how the stock market performs. With 401(k) plans, employees have the ability to save for retirement in a tax-deferred account. Employers can choose to match a portion of employee contributions, up to certain limits. Employees can also contribute after-tax dollars to a 401(k), which are taxed when withdrawn. 403(b) plans, also known as tax-sheltered annuities, are similar to 401(k)s. Employers can choose to match a portion of employee contributions, up to certain limits. With a 403(b), employee contributions are paid directly from their salary—and contributions are tax-deferred. In Florida, employers must adhere to retirement laws set by the federal government. Depending on the type of plan, employers may also be subject to state laws. This includes providing mandatory vesting, making required contributions, and notifying employees of their plan.

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What is the law concerning retirement benefits?

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