Introduction to the DROP (Deferred Retirement Option Program) Sponsored by:Flavio J. “Joe” Carreno

For all eligible FRS (Florida Retirement System) pension plan members, there’s a way to continue working while building retirement benefits, and it’s called the DROP (Deferred Retirement Option Program). When you enroll in this program, you’ll no longer earn service credit, and all retirement benefits are calculated up to the point you enter DROP. 

While still working, the money will accumulate in the FRS Trust Fund (this means you earn extra retirement money and interest on top of this amount). As soon as you retire, there are three ways to receive this money: 

• As a lump sum 

• A rollover 

• A combination of rollover and lump sum 

Before entering the DROP, a monthly benefit figure will be calculated, and this includes COLA (cost of living adjustments). If you need any help or guidance, we recommend starting with the DROP guide. Although it’s being updated currently, it should return soon. 

Useful Documents 

If you’re considering the DROP, there are some fantastic resources available online. Through the FRS Quick Clips page, you’ll have access to plenty of informational videos ranging from benefit payment options to the termination process. Elsewhere, there are four documents we recommend reading. 

DROP Special Tax Notice – Firstly, this talks about payment options, rollover plans, the effects of this move on tax, and various other topics. 

Preparing to Terminate the DROP – If you’re currently in the DROP period, you need to know what happens when terminating, and this is all explained in this PDF. You’ll learn about monthly benefits, the correct forms, etc. 

Investment Plan Rollover – In this document, you have information regarding the rollover process from the DROP lump sum to the FRS Investment Plan. 

DROP Rollover Flyer – Finally, this document presents information about rolling over into the FRS Investment Plan too. 

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Flavio “Joe” Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.