The Florida Retirement System (FRS) Plan Administrator is responsible for administering the FRS Investment Plan as
well as providing assistance to new employees in making a retirement plan election. Employees
may contact My FRS Guidance Line, at 1 (866) 446-9377, to speak to an Ernest
& Young Financial Advisor regarding their retirement plan options, comparing the plan features, as well
as investment and retirement planning. Employees may also contact the Division of Retirement at
(844) 377-1888 or locally at (850) 907-6500, to discuss their options for Regular Service Retirement,
the Deferred Retirement Option Program (DROP), Upgrading Prior Service Credit, Survivor Benefits, and
Special Risk Class:
Senior Management Class:
Elected Officers Class:
The Deferred Retirement Option Program (DROP) is an alternative program which allows
Pension Plan members to effectively retire, without terminating employment, for
up to five years. During this time, the DROP member will begin accumulating retirement
benefits, which are set aside in the FRS Trust Fund, earning tax-deferred interest
at 1.3%, compounded monthly. The DROP member will continue to work and earn a salary,
as well as continue participation in other benefits attributable to their employment
(i.e., accrue leave, enrollment in health, life, and supplemental benefits, etc.)
The member must, however, agree to terminate all FRS covered employment at the end
of DROP, or the five year period. An exception to this termination requirement exists
for Elected Officials, who have the option to postpone terminating from DROP until
the end of their current term of office, or any subsequent term of office. (See
the DROP Guide below, page 12). At the end of DROP participation, the member will
be required to terminate employment, but will begin receiving their lifetime monthly
Pension benefits, as well as their lump sum DROP accumulation.
Members interested in joining DROP should contact the Division of Retirement to
determine their earliest DROP eligibility date, toll free at 1-844-377-1888, option
3 or locally in Tallahassee at (850) 907-6500. DROP eligibility is based on the
member’s normal retirement date, that is, meeting the age and vesting requirements
or by attaining the total creditable years of service. (See the DROP Guide below, pages 6-7).
The State of Florida offers employees the option of continuing their state sponsored health and life insurance at retirement and continuing such coverage for their eligible dependents. Retirees will pay premiums based on their eligibility for Medicare and these rates are set each year by the Florida Legislature. Upon termination, retirees will receive New Retiree Packet containing specific instructions to continue their coverage. Retirees have 60 days from their date of termination to complete and submit the appropriate paperwork to People First.
All new retirees will also be required to submit a personal check/or money order to pay for the first month of retiree premiums. Thereafter, retirees have the option of having premiums deducted from their monthly Pension check or submitting premiums each month by personal check (Investment Plan and SMSOAP members). Supplemental pre-tax and post-tax policies must be continued on a private basis therefore, employees will need to contact their provider company for additional information.
Employees anticipating retirement should contact their Human Resource Office to ensure the appropriate paperwork is completed. The People First Service Center can assist retirees with any questions regarding continuation of coverage, making changes, or Open Enrollment elections at (866) 663-4735. Additional assistance is also available by emailing: firstname.lastname@example.org.
Pre-tax Supplemental Contacts Post-tax Supplemental Contacts
Retirees have the option to continue their state group health and life insurance
at retirement and have 60 days from their last day on payroll to elect continuation
of this coverage.
Retirees will pay premiums for state retiree health coverage based on their eligibility
for Medicare. Early retirees and their spouses (under age 65) will pay higher premiums
for state health coverage until they become eligible to enroll in Medicare.
Please see the following link for applicable premium rates: 2017 State Employees Group Health Insurance Premium Rate Table.
These rates are subject to change each year by the Legislature.
The state retiree health plan includes hospital, medical, and prescription drug
coverage and is offered to retirees enrolled in the State PPO Plan as well as the
state HMO plans through AVMED, United Healthcare, Aetna, Capital Health Plan, and
Retirees have the option of converting their $25,000 basic state life insurance
into one of two policies:
Retirees interested in continuing their optional state life insurance will be required
to contact Minnesota Life directly to convert to a private whole life policy at:
Retirees may continue their state dental and vision coverage through COBRA and will
automatically receive a COBRA packet from People First, if enrolled in the coverage
at the time of retirement. People First is required to mail the COBRA packet within
14 days of the notice of termination (or the date the PAR is processed in
the system). Retirees must ensure that their correct mailing addresses are in
Any other pre-tax or post-tax supplemental policies will need to be continued by
contacting the company directly to convert to a private policy. Contact information
for Supplemental Provider Companies: Pre-tax Supplemental Providers and Post-tax Supplemental Providers.
Pension Plan members will automatically receive the New Retiree Benefits Packet from People First once the Personnel
Action Request (PAR) has been processed by JAC.
For the purposes of determining eligibility for the continuation of state benefits
as a retiree, DMS will consider a Pension Plan member “retired”, upon termination
of employment and the receipt of a monthly benefit.
The PAR for a Pension Plan member should be coded as a “termination” with a reason
code of “56” for “retirement”. See DMS Management Advisory 14-005.
Pension Plan retirees (including DROP retirees) may elect to have premiums deducted
directly from their monthly Pension check. Pension Plan retirees will still be
required to submit a personal check, however, for the first month of retiree premiums.
Thereafter, the Division of Retirement can set up an automatic deduction of premiums
from the member’s monthly Pension check.
Investment Plan members are required to take a distribution before they are considered
“retired” under the Florida Retirement System and thus eligible for continuation
of state health and life insurance as a retiree.
The PAR for an Investment Plan member should therefore be submitted to JAC as a
“termination” with the reason code of “53” for “other”. See DMS Management Advisory 14-005.
Investment Plan members interested in continuing their state group coverage as a
retiree should be advised of the following:
People First will receive notification of all distributions taken each month from
the FRS Plan Administrator. Once notified of a member’s distribution, People First
will update the member’s records to indicate they are officially “retired” and will
mail the member the New Retiree Benefits Packet.
Investment Plan members may also contact the People First Service Center directly,
once they have taken a distribution, to enroll in retiree health and life coverage
Investment Plan retirees will be required to submit their health and life premiums
by personal check each month or they may submit payments up to six months in advance.
No other payment options are available at this time.
Investment Plan retirees will submit their personal check or money order, payable
to DSGI, to: The People First Service Center, P.O. Box 863477, Orlando, Florida
32886-3477. Premiums are due by the 10th each month prior to the month of
coverage. *** For example, premiums for June 2016 retiree coverage must be received
by the People First Service Center no later than May 10, 2016.
Investment Plan retirees do have the option of requesting payment coupons from People
First as a helpful reminder of when premiums are due each month. Coupons can be
requested by contacting the People First Service Center at 1-866-663-4735, option
2, for the Retiree/COBRA Section.
Employees become eligible for Medicare at age 65, or upon receipt of disability
benefits from Social Security. Employees have the following options for enrolling
The initial eligibility period to enroll in Medicare begins three months prior to
your 65th birthday and ends three months after.
Employees and their spouses who are covered under employer group coverage, have
the option of deferring enrollment in Part B of Medicare, until a Special Enrollment
Period. See the following Special Enrollment Period provisions.
Employees and their spouses with active state group coverage, may defer enrolling
in Part B of Medicare until one of two dates, whichever occurs first:
Medicare eligible employees electing to continue their state group health coverage
as a retiree, should be aware of the following:
1 This is a list of current state-contracted healthcare providers as of January
1, 2016. Please note that these providers are subject to change by the Legislature.
2 JAC staff cannot provide specific guidance with regard to Medicare or Social
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** denotes link to a site outside of the Justice Administrative Commission.
** denotes link to a page within the Justice Administrative Commission's website.