This post was created on 06/29/2023.

The Governor recently signed the Retirement Bill – SB 7024. This bill contains several changes to the Florida Retirement System (FRS) including significant changes to the Deferred Retirement Option Program (DROP) along with rate improvements for members of the FRS Investment Plan. Some of the key changes are listed below. Employees can click here to read more about SB 7024.

FRS Plan Changes and Improvements:

• Extends the maximum amount of time for a qualified FRS member to participate in DROP from 60 calendar months to 96 calendar months for all classes.
• Extends the maximum amount of time for Instructional Personnel to participate in DROP from 96 to 120 calendar months, effective June 30, 2023. This extension ends or sunsets June 30, 2029.
• Both instructional and administrative personnel also retain the option to extend their DROP period to “the last day of the last calendar month of the school year,” if their DROP termination date occurs before the end of the year.
• The bill eliminates the restrictive entry window for eligible FRS members to participate in DROP for all retirement classes. All employees can choose to enter DROP at any time after their normal retirement date.
• Increases the interest rate applied to a member’s accrued monthly DROP benefit from 1.3 percent to 4 percent.
• Increases the employer contribution from 11.91% to 13.57%.
• Increases the monthly retiree Health Insurance Subsidy from $5 to $7.50 for each year of creditable service. The maximum monthly benefit is adjusted from $150 to $225 and the minimum monthly benefit is adjusted from $30 to $45.

 

If you have specific questions regarding your retirement options please contact Retirement Services at retirementsvcs@pasco.k12.fl.us.