The Deferred Retirement Option Program (DROP) offers Florida Retirement System (FRS) participants a structured way to accumulate retirement benefits while continuing to work. If you’re considering joining DROP, understanding the enrollment process is crucial. This step-by-step guide will walk you through the process, helping you prepare for a smooth transition into the program. 

What Is DROP? 

DROP allows eligible FRS members to “retire” on paper while continuing to work. During this period, retirement benefits accumulate in a separate account, earning interest. When DROP participation ends, these funds become available as a lump sum, rollover, or a combination of both. 

Who Is Eligible to Enroll in DROP? 

To enroll in DROP, you must meet the following criteria: 

• Be a vested member of the FRS Pension Plan. 

• Have reached your normal retirement date based on years of service or age. 

• Be actively employed by an FRS-participating employer. 

Step-by-Step Guide to Enrolling in DROP 

Step 1: Determine Your Eligibility 

Before enrolling, confirm that you meet the eligibility requirements. You can do this by reviewing your retirement date or consulting with your human resources department or an FRS representative. 

Step 2: Decide on Your DROP Entry Date 

Your DROP entry date is critical because it determines when your benefits will begin accumulating in the DROP account. Your enrollment window typically starts as soon as you reach normal retirement eligibility and extends for up to 12 months. 

Step 3: Submit a DROP Enrollment Application 

To begin the official process: 

1. Obtain the DROP Enrollment Form (FRS-11o) from the Florida Division of Retirement website or your employer’s HR department. 
2. Complete the required sections, including personal details and beneficiary designations. 
3. Submit the application before your enrollment window closes. 

Step 4: Choose Your Pension Option 

As part of the enrollment process, you must select one of the four FRS pension payout options. This decision affects how your benefits are distributed, including potential benefits for a surviving beneficiary. 

Step 5: Confirm Your DROP Participation Period 

DROP participants can remain in the program for up to 60 months (five years), though some employees in specific roles may have extended participation options. Understanding your timeframe helps with financial planning. 

Step 6: Monitor Your DROP Account 

Once enrolled, your monthly retirement benefits will be deposited into your DROP account, where they accrue interest. Monitoring your account regularly ensures that you remain informed about your financial progress. 

Step 7: Plan for Exiting DROP 

Before your DROP period ends, consider how you will handle your accumulated benefits. You may choose to: 

• Roll over the funds into a qualified retirement plan. 

• Take a lump sum payout. 

• Use a combination of both options. 

Consulting with a financial professional can help you decide the best strategy based on your long-term retirement goals. 

Common Mistakes to Avoid When Enrolling in DROP 

• Selecting the Wrong Pension Option: Once chosen, your pension option cannot be changed, so consider your long-term needs. 

• Overlooking Tax Implications: Understanding the tax impact of your DROP payout can help you plan effectively. 

How BENCOR Supports Your DROP Enrollment 

BENCOR provides resources and guidance to help FRS members navigate the DROP enrollment process. From selecting pension options to planning for DROP payouts, our team can help you make informed decisions. 

Final Thoughts on Enrolling in DROP 

Understanding how to enroll in DROP is key to optimizing your retirement strategy. By following the proper steps and considering all available options, you can make the most of your DROP participation. 

If you’re preparing to enroll in DROP and want to explore your options, we can help. For personalized advice and in-depth planning, please schedule a free consultation with our team at BENCOR DROP support. We look forward to hearing from you!