What is DROP?
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).
Florida Retirement System - Deferred Retirement Option Program (DROP)
Electing to Join DROP:
Contact your Human Resource Office to complete the application for DROP located in the DROP Forms Packet .
Request an official DROP estimate by contacting the Division of Retirement, Bureau of Retirement Calculations at toll free (844) 377-1888 or locally at (850) 907-6500.
Your completed DROP application will need to be certified by your Human Resources Office and then submitted to the Division of Retirement.
You may apply for DROP up to six months prior to your first day of eligibility, or the date on which you first reach your normal retirement date, either by age or years of service.
You will receive a DROP Termination Packet automatically, three months prior to your original DROP termination date. This packet will contain the DP-TERM and DP-PAYT Forms for you to complete.
Contact your Human Resource Office once you receive this packet, to certify your date of retirement and submit your DP-TERM and DP-PAYT Forms.
If you anticipate retiring from DROP early, contact the DROP Termination Unit at toll free (844) 377-1888, opt 3 or locally at (850) 907-6500, to request your DROP Termination Packet.
Meet with your Human Resource Office regarding the continuation of insurance at retirement.