Frequently Asked Questions

Q 1: Who is eligible to participate in the DROP?

A 1: All vested members of the FRS who have reached normal retirement date. Participants of the State University System Optional Retirement Program, the Senior Management Service Optional Annuity Program, the State Community College System Optional Retirement Program, and local annuity plans are not eligible for DROP.

Q 2: How soon can I enroll and is there a time limit?

A 2: You may begin DROP participation in the month you reach your normal retirement date based upon age or in the month following the month you reach your normal retirement date based upon years of service. If you reach your normal retirement date based on years of service before age 57 (age 52 for Special Risk Class members) or reach your normal retirement date while holding an elected term of office, you may qualify to defer your DROP participation to a future date (see the answer to Question 4). If you wish to participate in DROP, you must notify the Division of your election to participate in DROP and the dates you have chosen to participate, no later than 12 months after you reach your normal retirement date (or deferral participation date). If you fail to notify us within this time frame, you will lose the opportunity to participate in DROP.

Q 3: When will I reach my normal retirement date?

A 3: You reach your normal retirement date as described on page 34. If you have 10 years of service in the Special Risk Class plus service in any other class of membership, you may qualify for DROP under either provision. You may choose to include or exclude any optional service you have purchased, such as refunded service, leaves of absence, or out-of-state service when establishing your normal retirement date for DROP. (Even if you choose to disregard it for purposed of DROP, this creditable optional service will still be used in the benefit calculation, if purchased.)

Q 4: Must I begin DROP when I reach my normal retirement date?

A 4: Not necessarily. Once you reach your normal retirement date, you will have 12 months to make your election to participate in DROP (however, for every month that you delay applying during this period, you lose a month of potential DROP participation time). Your can also defer DROP under the following circumstances:

- If you complete 30 years of service before you reach age 57, you may defer your DROP participation to begin any time from the date you complete 30 years of service until the date you reach age 57, in order to participate for 60 months. (A Special Risk Class member who completes 25 years before reaching age 52 may defer DROP to age 52.)

- If you are an elected officer who reaches your normal retirement date while holding an elected office, you may defer your DROP participation until your next succeeding term in the same office and may participate for up to 60 months, or the length of that term of office, whichever is less.

- If you decide to begin DROP at a later date because you qualify for a deferral, it is not necessary for you to notify the Division that you want to defer your DROP participation. However, to maximize your time in DROP, you must apply timely when your deferral date occurs.

Q 5: How long can I be in DROP?
A 5: You may participate in DROP for a maximum of 60 months following the date on which you first reach your normal retirement date or DROP deferral date.

Q 6: What happens if I don't terminate my employment when DROP ends?
A 6: If you don't terminate at the end of your DROP period, your retirement application is voided and your DROP participation is retroactively cancelled. Your employer will pay (or receive)any difference that exists between the total contributions paid and the contributions that would have been paid if you had not participated in DROP. Your FRS membership and service credit will be reestablished.

Q 7: Will my DROP money earn interest?

A 7: Yes, your DROP account earns interest, compounded monthly, at an effective annual rate of 6.5% while you are in DROP. No interest is earned on benefits on deposit for less than 1 month.

Q 8: Will I receive cost-of-living adjustments while in DROP?

A 8: Yes, your retirement benefits accumulating in DROP will be increased by a 3% cost-of-living adjustment each July 1 (your first cost-of-living adjustment will be prorated if you have not been in DROP for a full year).

Q 9: When and how will my DROP benefits be paid?

A 9: When you terminate employment, you may choose to receive your DROP benefits as a lump sum, a direct rollover to an eligible tax-sheltered account as described in s. 402(c) (8) (B) of the Internal Revenue Code, or a combined partial lump sum and rollover.

Q 10: Are death benefits payable under the DROP?

A 10: No. Since you are effectively retired upon entering DROP, your beneficiary would not be eligible for FRS in-line-of-duty death benefits. However, your beneficiary would be eligible to receive all of your DROP balance. And, if you chose option 2, 3, or 4, your surviving beneficiary would also receive monthly FRS benefits.

Q 11: Am I eligible for disability retirement benefits while I am in DROP?

A 11: No. Since you are effectively retired upon entering DROP, you would not be eligible for disability retirement benefits.

Q 12: Does my benefit going into my DROP account include health insurance subsidy (HIS) payments?

A 12: No. However, you may be eligible for HIS payments after DROP ends.

Q 13: Are my DROP benefits (and my future retirement benefits) subject to forfeiture?

A 13: Yes, but only if you have violated the forfeiture provisions of s. 121.091 (5), F.S. (see page 49). Reference: Section 121.091 (13), F.S.

Florida Retirement System DROP Program - Click for additional information