The monthly Florida Retirement System pension is the backbone of many members retirement plans. It guarantees you and possibly your spouse, a paycheck every year for the rest of your life. Your annual FRS pension is calculated using your years of service and the average of your five highest compensation years. The longer you worked for the State of Florida and the higher your salary, the larger your pension.

Florida also offers members the ability to participate in D.R.O.P., the Deferred Retirement Option Program. This is a great benefit to members close to retirement, as it allows you to start accumulating retirement benefits while still working. You stop earning service credit and your monthly pension benefits accumulate in the DROP Trust Fund. Your DROP benefits grow 4% annually and can be withdrawn as a lump sum upon retirement. 

Florida’s unique structuring of their pension system allows members to receive a monthly FRS pension check guaranteed for life and retire with a large lump sum DROP payout. DROP funds have not been taxed, so any DROP money that is not rolled over into a pre-tax retirement plan will be taxed as ordinary income.

If you would like more information on your FRS and DROP benefits or would like to schedule a review please click on the blue Schedule Meeting button below or contact us at 954-909-4094, email drop@floridaretirementplanning.com.