CF Employee Benefits

Deferred Retirement Option Program (DROP)

Description

The Deferred Retirement Option Program (DROP) provides you with an alternative method for payment of your retirement benefits for a specified and limited period if you are an eligible Florida Retirement System (FRS) Pension Plan member. Under this program, you stop earning service credit toward a future benefit and your retirement benefit is calculated at the time your DROP participation begins. While you are in the DROP, your monthly retirement benefits accumulate in the FRS Trust Fund earning interest while you continue to work for an FRS employer. Upon termination, your DROP account is paid to you as a lump sum payment, a rollover or a combination partial lump sum payment and rollover. Monthly benefits are paid to you in the amount as calculated upon entry into DROP, plus any applicable cost-of-living adjustments for intervening years. For more information, see the latest version of the DROP guide ().

The DROP Forms page provides access to forms available to DROP participants.

The following documents provide additional information about DROP:

• DROP Special Tax Notice () - Document that provides information for DROP participants including eligible rollover plans, payment options, tax effects and more.
• DROP Rollover Flyer () - Document that provides information about your ability to roll over your DROP lump sum into the FRS Investment Plan.
• Keep your DROP in the FRS () - Document that explains how you can roll over your DROP lump sum into the FRS Investment Plan.
• The DROP Participation Chart page allows you to determine your maximum DROP termination date, based on your DROP begin date.
  
  

Vesting

To be vested means that you have met the service requirements to be eligible to receive a future FRS retirement benefit.

• If you were initially enrolled in the FRS on or after July 1, 2011, you will be vested in the Pension Plan after eight years of creditable service, regardless of your membership class.
• If you are initially enrolled in the FRS before July 1, 2011, you will be vested in the Pension Plan after six years of creditable service.
  
  

Retirement Eligibility

Once you are vested, you are eligible for a future benefit when you terminate employment with all participating FRS employers and apply for your retirement benefit.

• Under normal retirement, you are first eligible to receive an unreduced retirement benefit based on your age or years of service. Please review page 25 of the Pension Plan Member Handbook for employment class guidelines.
• If you retire early (before you have reached normal retirement), then your monthly retirement benefit will be reduced 5 percent for each year up to your normal retirement age.
  
  

Online Access

Log into FRS Online at frs.fl.gov. Links are also available from other pages on the website. To view information about your account or perform estimates, you must log into your FRS Online account and follow the instructions provided.

Estimate Requests

• You may request a formal estimate from the Division of Retirement that will include:
• Statement of your total years of creditable service, beneficiary information, and the cost to purchase optional service credit, if any.
• An estimate of benefits with your proposed retirement date. You will also receive a statement showing how much you could accumulate if you choose to participate in DROP and continue employment for up to five more years.

For a formal request, please contact the Division of Retirement at 1-866-446-9377 (TRS 711).

Terminate from DROP

If you work until your original Deferred Retirement Option Program (DROP) termination date, the Division of Retirement will mail you your DROP Termination Packet approximately 90 days prior to your last day of employment. If your employment ends before your original DROP termination date, it is important that either you or your employer contact the Division of Retirement as soon as possible so you can receive your DROP Termination Packet in a timely manner. The Division of Retirement can be contacted via phone, mail, fax, or email to report your new DROP termination date.

How to Contact the Division of Retirement

Toll-free Phone: 844-377-1888
Local Phone: 850-907-6500
T.T.D. Phone: 800-955-8771
Fax: 850-410-2010
Email: retirement@dms.myflorida.com