State of Florida

Contact the Florida DROP

Call: 1-866-352-3767 or
Have a financial advisor contact you

Enrollment in DROP

Submit the following forms to your employer’s retirement office prior to the DROP effective date:

Notice of Election to Participate in the DROP and Resignation of Employment (DP-ELE)
Application for Service Retirement and the DROP - DP-11 for FRS members
Application for Service Retirement and the DROP - DT-11 for TRS members
Application for Service Retirement and the DROP - DS-11 for SCOERS members

Florida Deferred Retirement Option Program (DROP)

DROP Overview

Deferred Retirement Option Program (DROP) is an optional program in which members of a defined benefit plan choose to freeze their regular monthly retirement benefit and have it deposited each month in a separate account with the employer while continuing to work for and draw a salary from their employer.

The State of Florida introduced a 401(a) DROP in 1998, for the nearly 114,000 state employees and the 650,000 state, county, municipal and special district employees. For most Florida Retirement System (FRS) members, employees eligible for normal retirement (who have either 30 years of service or are at least age 62 with at least six years of service*) may enter DROP for up to five years. K-12 instructional employees may be eligible to participate in DROP for up to eight years depending on the school district's policy.

During the ensuing years, enrolled employees continue to receive their current wage and benefits packages. However, the state will begin making pension plan payments to those employees’ 401(a) DROP accounts, which will be guaranteed a 6.5% annual return and a 3% cost-of-living increase every 12 months.

When it comes time to actually retire, employees must decide what to do with the money in their DROP accounts. Currently, the state permits each DROP participant to either: take a lump-sum payment; roll the full amount into a tax-qualified plan (such as an IRA); or roll part of the DROP account to a tax-qualified plan and take the remainder in cash.

*Members of certain plans may have different retirement dates.

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