The Florida Retirement System (FRS) Provides

Offers A Choice of Two Plans

Florida State employees can choose from two plans: the FRS Pension Plan, which includes a Deferred Retirement Option Program (DROP), and The FRS Investment Plan.

The FRS Pension Plan

The FRS Pension Plan has been offered to Florida State employees for over 40 years. It’s designed for FRS members working for the state for most of their career who do not want to control or make decisions about their retirement plan.
As a defined benefit plan, you receive benefit at retirement if you meet certain criteria. The amount of your future benefit is determined by a formula, based on your earnings, length of service, and membership class, and may be adjusted by a cost-of-living increase each July (cost of living adjustment is only applicable for FRS service earned before July 1, 2011).
Your pension benefit is pre-funded by contributions paid by your state employer. The Florida Retirement System must ensure that sufficient funds are available when your benefits are due and bears the market risk and investment decisions.

FRS Pension Plan members are eligible for the Deferred Retirement Option Program (DROP)

Under this program, you can retire for a predetermined number of years as you continue to work for your FRS employer. This enables you to have your monthly retirement benefit remain in the FRS Trust Fund earning interest instead of being paid directly to you. Keep in mind, when your DROP period ends, you must retire. Upon retirement, you’ll receive your accumulated DROP benefit plus your monthly FRS pension benefit. Or, you can choose to roll over your DROP benefit into the FRS Investment Plan when your DROP period ends.

The FRS Investment Plan

The FRS Investment Plan has been an option for FRS employees since 2002. It’s similar to other defined contribution plans in which you and your State employer make contributions that are based on your salary and your FRS Membership Class.

It’s designed for employees who want greater control over their retirement plan and/or those who don’t expect to be working for the State Government for their entire careers. Earned benefits are subject to fluctuations in the financial markets and your chosen investment strategy. This differs from the Pension Plan in which benefits are accumulated slowly at first then increase at a faster rate the longer you’re employed by the State.

Unlike the Pension Plan, there is no fixed benefit at retirement. At the time you leave your State employment, your Investment Plan benefit will consist of cumulative employer and employee contributions, dividends and interest, and investment gains or losses, less expenses.

Taking The Mystery Out Of State Retirement Planning

Our highly-qualified speakers bring years of experience in helping Florida State employees  maximize their retirement income. These are just a few of the strategies you’ll learn about at our seminar:

  • Converting Retirement Assets Into Income
  • Timing Your Social Security Benefit
  • Lump-Sum Opportunities
  • Keeping More Control Of Your Retirement Assets

At Pension Navigators, we’re committed to providing you with the information you need to protect and grow your retirement income. Our seminar is designed to help you take a more proactive role in planning the financially-secure retirement you deserve. Topics covered in this highly-informative presentation include:

  • FRS Pension Plan
  • FRS Investment Plan
  • DROP (Deferred Retirement Option Program)
  • Personal Savings
  • 457 & 403b Tax-Deferred Plans
  • Bencor
  • Disbursements & Rollovers
Our seminars are for educational purposes only. No investments or financial products will be promoted at the event. However, our speakers may offer a private consultation.  Your attendance at our seminar in no way obligates you to engage with the speaker for any service. See our Seminar FAQs for complete information. Also review our Privacy Policy.
Alaska Pension Plan


How long do I need to work
before I am vested in FRS?

Keep in mind, you are always fully vested in your own employee contributions to FRS. There is no period of time you must work to own your employee contributions.

To be vested in the FRS Pension Plan, you need six years of employment if you enrolled prior to July 1, 2011. If you enrolled on or after July 1, 2011, you must have eight years of service.

What is the FRS retirement Age?

The normal retirement age under the FRS is 62 years of age or 30 years of service.

Do I have to pay Federal Income Taxes on distributions from my FRS Investment Plan?

Yes. You will owe income taxes on your distribution for the tax year it’s paid to you, unless you roll it over into another qualified plan. All Federal Regulations will apply. If you’re under 59.5 years old when you take a distribution you may be subject to an additional 10% Federal Tax Penalty on the taxable portion of your distribution.

Do I have to pay Federal Income Taxes on my FRS Pension Plan Benefits?

Yes. The amount of federal income tax you owe will be determined by the tax laws in effect for each year you receive pension benefit payments. The amount of tax will depend on your filing status, number of deductions and exemptions, and other income sources you might have. Because your Pension Plan payment can only be taken in the form of a lifetime annuity, it is not subject to an early withdrawal penalty no matter what your age is when you begin receiving payments.

What is DROP?

DROP is the Deferred Retirement Option Program. Under this program, you can retire for a predetermined number of years as you continue to work for your FRS employer. This enables you to have your monthly retirement benefit remain in the FRS Trust Fund earning interest instead of being paid directly to you. Drop is only available for members of the FRS Retirement Plan. Investment Plan members are not eligible for DROP.

Will my FRS retirement benefits be reduced by Social Security Benefits I receive?

No. Your FRS benefits will not be offset (reduced) by Social Security benefits you receive. However, your Social Security benefit may be affected because you receive an FRS pension. For complete information go to the Social Security website:

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This educational website provides an overview of what we can provide to State Departments seeking to help their employees stay current with the ever-changing rules and requirements of their retirement plans.

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Who We Are

Pension Navigators is an educational organization dedicated to helping State Employees make informed decisions when planning their retirement. The educational resources we provide are designed to provide them with the most current information on their State Pension Benefits plus strategies for achieving their retirement income goals.

This website provides an overview of what we can provide to State Pension Agencies to help their employees stay current on the latest rules and requirements of their pension plans.


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