What is the DROP Program about?

The Deferred Retirement Option Program (DROP)

The DROP offered under the Pension Plan allows members who are eligible for normal service retirement to effectively retire and continue working for a limited time while their monthly retirement benefits, plus any applicable cost-of-living adjustment and interest, accumulate on a tax-deferred basis in the FRS Trust Fund. When a participant’s DROP period ends, the participant must terminate all employment with FRS participating employers to receive the DROP accumulation and begin receiving monthly retirement benefits in the amount determined at time DROP participation
began, plus any applicable cost-of-living adjustment.

Reference: Section 121.091(13)(c), Florida Statutes
Rule 60S-11.001, 11.002, and 11.004, Florida Administrative Code Disability Retirement and the DROP

DROP participants are not eligible for FRS disability benefits because they are considered retired under the FRS when DROP begins. Under the FRS, once you have retired, you may not change your type of retirement from a normal service retirement to a disability retirement. If you become disabled while in DROP, you will receive the funds accumulated in DROP up to the month you terminate employment and end your DROP participation and begin receiving your monthly service retirement benefit. Your employer might offer other disability benefits or provide disability insurance apart from your FRS retirement benefit. Check with your human resource officer to ensure that you are receiving all the benefits available to you.

Reference: Sections 121.091(4)(b) and (c) and (13)(c)7, Florida Statutes Rules 60S-4.002(4), 4.007, and 11.004(6), Florida Administrative Code.