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If you work for Martin County Schools: whether you're a teacher at Jensen Beach Elementary, a guidance counselor at South Fork High, or an administrator at the district office: you've probably stared at that FRS enrollment packet wondering: Should I go with the Pension Plan or the Investment Plan?

It's one of the most consequential financial decisions you'll make during your career, and honestly, the state doesn't make it easy to understand. Let's break it down in plain English so you can make the right call for your situation in 2026.

The Big Decision Every Martin County Schools Employee Faces

Here's the reality: new Martin County Schools employees have just eight months from their hire date to choose between the FRS Pension Plan and the FRS Investment Plan. Miss that window? You default into the Investment Plan automatically.

That's a pretty big deal when we're talking about potentially decades of retirement income.

The frustrating part is that there's no universally "better" option. The right choice depends entirely on your personal circumstances: your health, your family situation, how long you plan to work in Florida's public school system, and your comfort level with managing investments.

Martin County retirement decision crossroads with signs pointing to school and office, symbolizing FRS options

Understanding the Two FRS Options

Let's get clear on what you're actually choosing between.

The FRS Pension Plan (Defined Benefit)

The Pension Plan is the traditional retirement model. The state of Florida promises you a specific monthly benefit when you retire, calculated based on your years of service and salary. The key word here is promises: regardless of how the stock market performs, your monthly check stays the same.

Think of it as a guaranteed paycheck for life once you retire. You don't manage any investments. You just work your years, hit your retirement date, and the checks start coming.

The FRS Investment Plan (Defined Contribution)

The Investment Plan works more like a 401(k). Both you and the state contribute to your account, but your retirement benefit depends entirely on how well those investments perform over time.

You get more control over your money: you can choose from various investment options and manage your portfolio. But you also carry the risk. If the market tanks right before you retire, that's your problem to solve.

When the Investment Plan Makes Sense

The Investment Plan isn't inherently worse than the pension: it's just different. For certain Martin County Schools employees, it might actually be the better fit.

You might lean toward the Investment Plan if:

  • You don't plan to stay long. If you're not sure you'll spend your entire career in Florida's public education system, the Investment Plan gives you portability. Your money is yours to take when you leave.

  • Your health situation is a factor. This is a tough conversation, but it matters. If you're dealing with health concerns and don't expect a lengthy retirement, the Investment Plan allows you to preserve assets for your beneficiaries rather than losing most of the value when you pass.

  • You want to leave money to non-spouse beneficiaries. Passing a pension to heirs (especially non-spouses) gets complicated. The Investment Plan makes it straightforward to leave remaining funds to children, siblings, or anyone else you designate.

  • You're confident in your investment abilities. Some people genuinely enjoy managing their own portfolios and believe they can outperform the pension system's returns. If that's you: and you have the track record to prove it: the Investment Plan gives you that freedom.

  • You want flexibility in how you draw income. Maybe you plan to start a small business after retiring from the classroom, and you'll need more income early on and less later. The Investment Plan accommodates variable withdrawal strategies that the pension can't match.

Group of Martin County educators reviewing retirement investment plans together at a conference table

When the Pension Plan Is the Smarter Choice

For many Martin County Schools employees: especially those who plan to make education a lifelong career in Florida: the Pension Plan typically makes more sense.

The pension tends to win when:

  • You're in it for the long haul. Planning to put in 25-30 years with Martin County Schools? The pension's guaranteed lifetime income becomes incredibly valuable over a multi-decade retirement.

  • You don't want investment stress. Managing a retirement portfolio through market swings isn't for everyone. The pension removes that burden entirely: you just collect your check.

  • Longevity runs in your family. If your parents and grandparents lived well into their 90s, a pension that pays until your last day on earth provides security that a finite investment account can't match.

  • You value predictability. Knowing exactly what your monthly income will be makes budgeting in retirement dramatically easier. For educators transitioning from a steady paycheck, that consistency often feels right.

As we discuss on The 1715 Podcast, retirement planning isn't just about maximizing dollars: it's about matching your financial strategy to your actual life.

2026 Market Realities You Can't Ignore

Here's where 2026 specifically enters the conversation.

Recent FRS system analyses highlight something important: a 0% market return in 2026 alone would significantly impact the overall system's funding status. And a severe market decline: similar to 2008's 20% drop: would have substantial long-term consequences.

What does this mean for your choice?

If you choose the Investment Plan, you personally absorb market risk. A bad year hits your account directly. A string of bad years right before retirement could derail your plans entirely.

If you choose the Pension Plan, the state absorbs that risk. Your benefit calculation doesn't change based on whether the market had a good year or a terrible one.

This doesn't make the Investment Plan "bad": but it does mean you need to be honest with yourself about your risk tolerance and your timeline.

The Switching Rules: What Happens If You Change Your Mind

Made your choice and regretting it? There's some flexibility, but it comes with caveats.

You can switch from the Investment Plan to the Pension Plan if you're actively working and have at least 8 years of service. However, you'll need to use your Investment Plan account balance to "buy into" the pension, and depending on the numbers, you might need to pay out-of-pocket to make up any shortfall.

Switching the other direction: from Pension to Investment Plan: is available during your career, but once you retire under the pension, that decision is final.

The takeaway? Your initial choice matters. While it's not completely irreversible, switching has real costs and complications.

Financial balance scale comparing pension security and investment growth for Martin County Schools retirement

Running Your Own Numbers

Generic advice only gets you so far. What really moves the needle is running projections based on your actual situation:

  • Your current age and planned retirement age
  • Your expected years of service with Martin County Schools
  • Your salary trajectory
  • Your health and family longevity history
  • Your other assets and retirement accounts
  • Your Social Security situation (remember, some educators have different SS rules)

At Davies Wealth Management, we work with Martin County educators to build these projections out in detail. We've seen teachers who were convinced the pension was their best bet discover the Investment Plan actually served their goals better: and vice versa.

If you're also thinking about broader estate planning questions: like how your FRS choice interacts with your overall wealth transfer strategy: our free estate planning tool can help you start mapping that out.

Taking the Next Step

The FRS decision isn't something to guess at or default into because the deadline snuck up on you. For Martin County Schools employees in 2026, the stakes are too high and the options too different to treat this casually.

Here's what we recommend:

  1. Gather your specific numbers. Know your salary, your service credit, and your expected trajectory.
  2. Be honest about your career plans. Are you staying until retirement or might you move states in five years?
  3. Assess your risk tolerance realistically. Not how you think you should feel about market volatility: how you actually react when your account drops 15%.
  4. Get professional guidance. This is one of those decisions where a qualified financial advisor pays for themselves many times over.

Your retirement security deserves more than a coin flip. Take the time to get this right( your future self will thank you.)