Broker Check

Deferred Retirement Option Program (DROP)

What is DROP and what does it offer?

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.

For more Information FRS DROP benefits you can view the FRS DROP Guide here.

Gabor Financial Guidance

Is entering DROP the best decision for you and your retirement plan? What do you do with the lump sum benefit if you enter? How is the money invested prior to leaving DROP? After? We believe there is no one-size-fits-all approach to your personal retirement plan. Our advisors specialize in helping FRS members with Florida’s Deferred Retirement Option Program (DROP). If you are an eligible Florida Retirement System (FRS) Pension Plan member, you can roll over your DROP funds into one of several investment options. DROP gives you the security of a monthly retirement check along with an extra sum of money that can help you live more comfortably in retirement.

Contact us to schedule a conversation with a Gabor financial advisor.

Have a Question

Thank you!