Company Profile
Company Overview
The State Board of Administration of Florida (the “SBA” or the “Board”) is an agency of Florida state government that provides a variety of investment and trust services to various governmental entities. A key responsibility is to manage the assets of the Florida Retirement System (FRS) Pension Plan, which is the fifth largest public pension plan in the United States, with total assets of approximately $135 billion as of June 2013. The plan provides retirement benefits for over 900,000 current and former public employees, with approximately $2 of every $3 paid from investment earnings. The SBA’s primary focus is on investment management as it does not manage pension plan benefits. The SBA is also responsible for managing the FRS Investment Plan (a defined contribution plan), the Lawton Chiles Endowment Fund, the Local Government Surplus Funds Trust Fund (currently known as Florida PRIME), the Florida Hurricane Catastrophe Fund and a variety of smaller funds. Total assets under SBA management as of June 30, 2013 were approximately $165 billion.
The SBA is governed by a 3-person Board of Trustees comprised of the state’s Governor, Chief Financial Officer, and Attorney General. The Trustees delegate authority to the Executive Director and Chief Investment Officer (ED/CIO), who serves at the discretion of the Trustees and is responsible for managing and directing all administrative, personnel, budgeting, investment policy, and investment functions. The ED/CIO manages approximately 200 professional and administrative support staff.
SBA Mission
Our mission is to provide superior investment management and trust services by proactively and comprehensively managing risk and adhering to the highest ethical, fiduciary, and professional standards.
SBA Vision
Our vision is to be the best public sector investment and administrative service provider, while exemplifying the principles of trust, integrity and performance.
Company History
The SBA is located in Tallahassee, the capital of Florida and home to two major universities and an array of museums, attractions, parks and other outdoor recreation opportunities. The Tallahassee metropolitan area population was 375,000 as of 2012. Located on the Panhandle of Florida, Tallahassee is a place where Southern hospitality is more than a slogan, it’s a treasured way of life. It is a diverse and welcoming community that enjoys four seasons and Florida’s favorable cost of living. There is no state or local personal income tax in Florida. Northwest Florida’s renowned white sand beaches are easily accessible from Tallahassee.
FRS Pension Plan Posts Strong Investment Performance
~Long-term Returns Remain on Track~
Tallahassee, FL – The State Board of Administration of Florida released preliminary investment performance figures for the fiscal year ending June 30, 2013 showing the FRS Pension Plan earning a 13.12% return, beating its benchmark by 111 basis points, and ending the year with a market value of $132.4 billion. This represents a fund balance increase of $9.65 billion more than last year’s fiscal year-end figure, after net distributions of $6.2 billion to participants. Audited financial figures will be released later this year.
All asset classes earned positive returns during the fiscal year, led by the Global Equity asset class which earned 18.56%. Strategic Investments, Real Estate and Private Equity asset classes each earned 16.16%, 14.92% and 10.65% respectively. Fixed Income and Cash each earned .4% and .29% respectively.
Ash Williams, Executive Director and Chief Investment Officer for the SBA said; “While we are always pleased to see a strong annual performance our focus is on the long-term—20 and 25 years.” For these periods the fund has generated returns of 7.99% and 8.93% respectively.” Mr. Williams further commented, “The strong long-term performance can be attributed to continued prudent diversification of assets, cost controls, and excellent fund manager selection.”
Florida Retirement System Investment Plan
The FRS Investment Plan, established to provide Florida’s public employees with a flexible alternative to the traditional pension plan, posted year-end gains in returns and participation. The one-year return based on aggregate employee fund selection was 10.12%, beating a benchmark of 9.68%. The benchmark is based on the weighted aggregate of the performance of various indices representing each asset class.
During the fiscal year ending June 30, 2013, 26% of newly hired employees elected to join the Investment Plan, and 5,722 Pension Plan members used their 2nd election to switch to the Investment Plan resulting in a record high 150,721 member accounts. Additionally, the Plan’s year-end assets of $7.9 billion were at a record setting level, representing an increase of approximately 10% over last year’s fiscal year-end figure.
Benefits
Health
The State Board Administration (SBA) pays a large % of the premium for all full-time employees' group health, regardless of the type or level of coverage. The value of the current annual individual benefit is
$6,952.80 and the current annual family benefit is $15,589.68. Health plans offered are the State PPO Florida Blue and HMO-Capital Health Plan.
Life
The SBA will pay for a basic life insurance policy with a death benefit equal to $25,000. Also available is
optional term life. The employee may enroll in a policy of up to seven (7) levels of coverage. Each level of coverage is equal to the employee's annual salary – to a maximum of $1,000,000 in Optional Group Term Life Insurance.
Disability
A short term disability policy is provided to all SBA’s employees at no cost. The employee is eligible for coverage after all personal leave has been depleted. Once all leave options have been exhausted, the employee is eligible to apply for the disability pay. Insured employees who become eligible for benefits under the Plan receive a benefit equal to 65% of their basic daily earnings on the date of disability, subject to benefit reduction such as Social Security benefits, workers' comp benefits, or other regular or disability benefits under the State of Florida Retirement System.
Dental
The State Board Administration (SBA) pays 100 % of the premium for all full-time employees and
prorated amount based on (FTE) full-time equivalent.
Annual Leave - Vacation Time
SBA employees receive 176 hours (4.4 weeks) of annual leave upon appointment date and each
anniversary date. SBA’s employees may carry a maximum of 480 hours of annual leave over on their anniversary. The difference of hours between 480 and the number of hours in the annual leave account will be transferred to their sick leave account on their anniversary date prior to the new accrual of 176 and 104 being deposited.
Sick Leave
SBA employees receive 104 hours (2.6 weeks) of sick leave upon the appointment date and each
anniversary date. Sick leave hours may be accumulated without penalty. There is no maximum number of hours that can be carried in the sick leave account. Upon separation from service SBA employees with 10 years of service may be paid for 25% of their sick leave hours up to 480 hours.
Holidays
There are nine paid holidays each calendar year and one paid personal holiday each fiscal year, which
begins July 1st.
Retirement
Effective July 01, 2013, SBA provides a choice between two retirement programs and funds each at
6.95% of gross pay. There is a 3% contribution required on the part of the employee. The traditional program or pension plan requires eight years of service to vest. Deferred Retirement Option Program
DROP) is available. Upon retirement, benefits are paid monthly for the employee's lifetime. The investment plan requires one year of service to vest. The agency deposits contributions into a tax-free portable individual account that you control. You will absorb the market activity. Upon retirement, you can take your benefit in a single payment, in multiple payments over time, guaranteed monthly payments for life, or any combination.
Tax Deferred Employee Investments
The agency provides a deferred compensation plan that allows savings to grow tax free until withdrawal.