Educational information for Florida Retirement System (FRS) members. Not personalized investment, legal, or tax advice. Speak with a licensed professional regarding your individual situation.

FRS Contribution Allocation Guide

For FRS Investment Plan participants, allocation is the lever that controls long-term outcomes. The plan offers a focused menu of low-cost funds spanning target date series, US equity, international equity, fixed income, and a money market option, plus a self-directed brokerage account for members who want broader choice. This guide explains how to think about the menu and the most common allocation patterns by life stage.

The FRS Investment Plan Fund Menu

• Retirement Date Funds (target date series) — a single diversified fund matched to your expected retirement year. Automatically becomes more conservative over time.
• US Stock Market funds — broad domestic equity exposure.
• Foreign Stock funds — developed and emerging markets equity.
• Bond funds — investment-grade fixed income.
• Money Market fund — short-term, capital-preservation option.
• Self-Directed Brokerage Account (SDBA) — access to thousands of mutual funds and ETFs outside the core menu.

Target Date Funds: The Default Path

For members who do not want to manage allocation actively, the target date series is a reasonable default. The fund’s glide path shifts from heavy equity exposure early in your career to a more conservative bond-heavy mix near retirement. It is not customized to your specific risk tolerance, but it is professionally rebalanced and broadly diversified.

Equity vs Fixed Income Across a Career

Younger members with decades until retirement typically can carry more equity exposure because they have time to recover from market drawdowns. As retirement approaches, sequence-of-returns risk becomes more important and many members reduce equity exposure. The mix should also reflect your other retirement assets — if you have a substantial Pension Plan benefit (for members who switched plans), that pension functions like a large bond position, which may justify holding more equity in the Investment Plan side.

The Self-Directed Brokerage Account

The SDBA gives members access to a wider universe of funds and ETFs. It is most useful for members with specific exposures they want (sector funds, dividend strategies, specific managers) and who are comfortable making and monitoring those choices. The SDBA carries an additional administrative fee and excludes participation in the FRS-provided MyFRS Financial Guidance Line for the SDBA-held assets.

Rebalancing

Markets pull your allocation off target over time. Rebalancing — selling what has grown and buying what has lagged — restores your intended mix. Most members benefit from rebalancing once a year or when allocations drift more than 5 percentage points from target. The FRS Investment Plan supports rebalancing through its online portal at no cost.

How a Benefit Review Helps

A Personalized FRS Benefit Review evaluates your current allocation against your age, target retirement date, other assets, and stated risk tolerance — and identifies whether your current mix is aligned with your goals or has drifted.

Related FRS Topics

• Personalized FRS Benefit Review
• Pension vs Investment Plan
• DROP Timing Strategy
• FRS Retirement Eligibility Rules
• FRS Contribution Allocation