The Deferred Retirement Option Program (DROP) provides Florida Retirement System (FRS) participants with a unique opportunity to begin receiving pension benefits while still working. However, the decisions you make when entering, participating in, and exiting DROP can have a significant impact on your overall retirement strategy. That’s where customizing DROP strategy with BENCOR becomes invaluable. 

With nearly 30 years of experience serving Florida educators, school employees, and public servants, BENCOR DROP Support offers personalized guidance to help participants make informed decisions at every stage of DROP participation. From enrollment to payout planning, BENCOR helps align DROP benefits with your broader retirement, tax, and estate plans. 

The Importance of a Customized DROP Strategy 

Every participant’s retirement goals, financial situation, and family needs are unique. A one-size-fits-all approach doesn’t work when it comes to DROP participation — that’s why personalized planning is so important. 

Key Factors That Influence DROP Strategy: 

• How long you plan to participate in DROP. 

• Whether you want to take a lump sum, rollover, or combination payout. 

• Your income needs in retirement. 

• Tax considerations before, during, and after DROP. 

• Healthcare planning, particularly if you retire before Medicare eligibility. 

• Legacy and estate planning priorities. 

Customizing DROP strategy with BENCOR allows you to balance these considerations and develop a plan designed to meet your personal financial goals. 

How BENCOR Supports DROP Participants at Every Stage 

1. Pre-Enrollment Guidance

The decisions you make before entering DROP set the foundation for your retirement income plan. BENCOR advisors help you: 

• Review your eligibility date and enrollment window. 

• Understand your pension options and how they impact your retirement benefits. 

• Assess how DROP fits into your overall retirement timeline. 

• Coordinate DROP participation with Social Security claiming strategies and other savings. 

Personalized Benefit Projections 

BENCOR can help you request and evaluate benefit projections, so you have a clear understanding of how your pension and DROP benefits align with your expected retirement expenses. 

2. Ongoing Support During DROP Participation

Once you enter DROP, your pension benefits accumulate in your DROP account, earning interest while you continue to work. BENCOR provides ongoing support to: 

• Help you track your DROP balance and estimate future payouts. 

• Coordinate your sick leave and vacation payouts with your DROP strategy. 

• Review your tax withholding and projected income to help manage your overall tax picture. 

• Align savings and investment contributions to complement your DROP benefits. 

Preparing for the Transition 

As you approach your DROP exit date, BENCOR helps you plan your next steps — from handling your payout to structuring your retirement income. 

3. Payout Planning and Tax Strategies

Exiting DROP requires important decisions about how to receive and manage your accumulated benefits. BENCOR helps participants: 

• Understand the payout options — lump sum, rollover, or combination. 

• Evaluate the tax implications of each option. 

• Explore ways to spread withdrawals to manage taxable income. 

• Assess how your payout fits into your broader retirement income plan. 

Customized Payout Strategies 

Whether your priority is funding travel, supporting charitable giving, or preserving assets for heirs, BENCOR helps tailor your payout strategy to match your goals. 

Coordinating DROP with Your Full Retirement Plan 

DROP benefits are just one piece of your financial puzzle. Customizing DROP strategy with BENCOR includes integrating DROP with: 

• FRS Pension Payments – Coordinating monthly pension income with DROP withdrawals and other savings. 

• Social Security – Aligning DROP payouts with your claiming strategy to create balanced income. 

• Health and Long-Term Care Planning – Addressing potential healthcare costs and long-term care coverage needs. 

• Legacy and Estate Planning – Making certain DROP benefits are properly designated for heirs and integrated with your estate plan. 

BENCOR takes a holistic approach so that every financial decision related to DROP fits into your broader retirement strategy. 

Customized Support for Couples 

For married participants, BENCOR helps coordinate DROP strategies with your spouse’s retirement plans. Whether your spouse is also in FRS, has their own pension, or relies on personal savings, aligning both plans helps create a cohesive household retirement strategy. 

Why Experience Matters 

BENCOR has been a trusted partner for Florida public employees for nearly three decades. Our focus on customized DROP strategies helps ensure participants make informed decisions tailored to their personal goals — not generic recommendations. 

What Sets BENCOR Apart: 

• Nearly 30 years of experience with FRS and DROP participants. 

• Familiarity with school district and municipal retirement programs. 

• Focused on the unique needs of Florida educators and public employees. 

• Personalized, participant-centered planning — no one-size-fits-all solutions. 

Final Thoughts on Customizing DROP Strategy with BENCOR 

The decisions you make at every stage of DROP participation shape your retirement income, tax picture, and legacy for years to come. With BENCOR’s personalized guidance, you can develop a strategy that reflects your unique goals and financial situation, helping you transition into retirement with clarity and confidence. 

If you’re ready to explore how BENCOR can help you customize your DROP strategy, let’s begin a conversation! Schedule a free consultation with our team at BENCOR DROP support today.