***2023 Legislative Update – SB 7024 – DROP***
Senate bill 7024 was signed by the governor on June 5, 2023. Please refer to the memorandums
and FRS Employer Newsletter below for a summary of changes to the program affecting both
current and prospective DROP participants.
Revised Forms
- Updated DROP Retirement Forms Packet - Includes
new Optional DP-ELE and Optional DP-11 forms. These forms should be used by all prospective
DROP participants effective immediately.
- Employees beginning DROP in June or later
who have already submitted their application to the Division of Retirement should not
reapply using these forms, unless and until they are directed to do so once procedural
updates have been officially released by the Division of Retirement.
- Optional DP-ELE – Current DROP participants that
wish to continue participation for up to an additional 3 years should complete this form.
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 eight years. During this time, the DROP member will
accumulate retirement benefits, which are set aside in the FRS Trust Fund,
earning tax-deferred interest at 4% annually, 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.) However, the
member must terminate all FRS covered employment at the end of DROP, or the eight-year period. * At
the end of DROP participation, the member will begin receiving
their lifetime monthly pension benefits and will receive their lump sum DROP
accumulation payout.
*An exception to this termination requirement exists for elected officials who have the
option to defer terminating employment after their DROP participation period ends until the
end of their current or successive term(s) of office.
Members interested in joining DROP should contact the Division of Retirement to
determine their DROP eligibility date at toll free (844) 377-1888, option 3, or
locally 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 requisite years of creditable service.
Florida Retirement System - Deferred Retirement Option Program (DROP)
Electing to Join DROP:
-
Request an official DROP estimate by contacting the Division of Retirement at toll free
(844) 377-1888 or locally at (850) 907-6500.
- Please be aware that it typically takes several weeks (6-8 minimum) to receive this information,
so you’ll want to make the request early enough to obtain the estimate before your desired DROP
begin date.
- Alternatively, employees may log in to FRS Online to create unofficial estimates immediately. A summary
of salaries by fiscal year is available through each employee’s FRS Online member account
to assist with the calculation of their Average Final Compensation.
-
Your completed DROP application will need to be certified by your Human Resources Office
and submitted to the Division of Retirement.
-
After reaching your normal retirement date, you may apply for DROP up to six months prior
to your desired DROP begin date.
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You will receive a DROP Termination Packet automatically, three months prior
to your 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.
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If you anticipate retiring from DROP early, contact the DROP Termination Unit
at toll free 844-377-1888, option 3, or locally at (850) 907-6500, to request your
DROP Termination Packet.
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Meet with your Human Resource Office regarding the continuation of insurance at retirement.
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