Helpful Definitions

WHAT IS FRS?

A defined benefit plan that pays vested participants a lifetime monthly benefit using a formula based on years of service, an average final compensation of the highest fiscal years of earnings, and a percentage value while working for an FRS-covered employer. Vested Pension Plan members who reach their normal retirement date may participate in the DROP or Deferred Retirement Option Program.

The Florida Retirement System offers you the option of participating in two FRS retirement plans: the FRS Investment Plan and the FRS Pension Plan (which includes DROP). In addition to the FRS retirement plans, universities offer a defined contribution program for some of its members. The Division of Retirement also has oversight of the Police & Fire local government retirement plans specifically for local police officers and firefighters.

WHAT IS DROP?

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 to another qualified plan or a combination partial lump sum payment and partial rollover. Monthly benefits are paid to you in the amount calculated at DROP entry, plus any applicable cost-of-living adjustments during DROP participation.

8 am - 5 pm

Call Us

Helpful Definitions

WHAT IS FRS?

WHAT IS DROP?

Contact

Quick Links