Fla. Admin. Code R. 60S-11.004 (2026)

(1) Calculation of Benefits.

(a) The retirement benefit of a member who has elected to participate in the DROP shall be calculated as provided in Rule 60S-4.004, F.A.C.

(b) A member may choose to receive his or her accumulated annual leave payment, as defined in section 121.021, F.S., and earned in accordance with section 121.091(13)(c), F.S.

(2) Beneficiary Designation – The beneficiary eligible to receive any accrued DROP benefits payable if the DROP participant dies before the completion of the DROP participation period will be the most recent joint annuitant or beneficiary designated to receive retirement benefits upon the death of the participant, as directed by the participant on the Form FST-12, Florida Retirement System Pension Plan Retired Member and DROP Participant Beneficiary Designation Form as adopted in subsection 60S-4.011(5), F.A.C. However, if the beneficiary or joint annuitant dies during the DROP participation period, the participant may designate a new beneficiary as provided in Rule 60S-4.011, F.A.C., as follows:

(a) If the participant retired under Option 1 or 2, he or she may name a new beneficiary on Form FST-12. Such beneficiary will be eligible for both the DROP benefits and any benefits provided by the option selected, or

(b) If the participant retired under Option 3 or 4, he or she may name a new qualified joint annuitant or spouse on Form JA-1, Florida Retirement System Pension Plan Change of Joint Annuitant Form, adopted in subsection 60S-4.010(8), F.A.C. Such beneficiary will be eligible for both the accrued DROP benefits and any continuing benefits, or

(c) If the participant retired under Option 3 or 4, he or she may name, on Form FST-12, a new beneficiary who will receive only the accrued DROP benefits. Such beneficiary will not replace the joint annuitant or spouse or be eligible for any continuing benefits.

(d) The participant may not name a beneficiary to receive DROP benefits who is different from the beneficiary designated to receive the retirement benefits.

(3) Accrual of DROP Benefits.

(a) Effective with the DROP begin date, the member’s initial normal monthly benefit shall be fixed and shall accrue monthly in the System Trust Fund.

(b) DROP interest shall accrue as provided in section 121.091(13)(c), F.S.

(4) Health Insurance Subsidy – A DROP participant is not eligible to apply for or receive retiree health insurance subsidy payments as specified in section 121.091(13)(f), F.S. A member shall not earn creditable service applicable to the Health Insurance Subsidy while participating in the DROP.

(5) Employment During DROP Participation.

(a) A DROP participant is considered a “retiree” as defined in Rule 60S-6.001, F.A.C. Pursuant to section 121.091(13), F.S., employment is not guaranteed during the DROP participation period.

(b) Employment continues during participation in the DROP through the date the member preselected to stop participation in the DROP, except that elected officers may continue in office after the DROP end date as provided in subsections (10) and (11), and certain instructional and administrative personnel, with approval of their employer and the Division, may extend their DROP participation as provided in section 121.091(13)(b), F.S.

1. A DROP participant may change jobs or have more than one FRS employer, as long as the participant does not have a “DROP break in service” as defined in Rule 60S-11.001, F.A.C. If a break in service occurs, DROP participation will cease as of the end of the month in which no compensation is received for covered employment.

2. If the participant is employed by two employers upon beginning participation in the DROP, the member and both employers must complete and submit the employer’s portion of a Form DP-ELE, Florida Retirement System Pension Plan Notice of Election to Participate in the Deferred Retirement Option Program (DROP) and Resignation of Employment, as adopted by reference in Rule 60S-11.002, F.A.C. Only one employer is required to acknowledge the Form DP-11 prior to submission to the Division of Retirement. A change or addition of a new employer after commencement of the DROP only requires the employee and new employer to submit Form DP-ELE.

3. All employers are required to acknowledge on Form DP-ELE the participant’s DROP termination date, which may be extended as provided in subparagraph 4., (but not beyond the maximum months allowed pursuant to section 121.091(13)(b), F.S.) and to acknowledge potential liability for any additional retirement contributions and interest required if the participant fails to timely terminate employment.

4. If a participant intends to continue employment beyond the preselected DROP end date and prior to completion of the maximum months allowed pursuant to section 121.091(13)(b), F.S., a new form DP-ELE must be submitted to and received by the Division prior to the initial preselected DROP end date with a new DROP end date acknowledged by both the participant and all affected employers.

5. DROP participants who are eligible to participate in the DROP beyond the maximum DROP participation period as provided in section 121.091(13), F.S., must submit to the division a completed Form DP-EXT, effective 08/26, http://flrules.org/Gateway/reference.asp?No=Ref-19516, Florida Retirement System Pension Plan Extension of Deferred Retirement Option Program (DROP) for Specified K-12 Personnel, herein adopted by reference. The application must be received prior to the DROP termination date established for the participant’s maximum DROP participation period, but no earlier than six months prior to such date. The applicant will receive confirmation from the Division when the DP-EXT is received and when the application for extension is approved or denied. The DP-EXT form may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with hearing or speech impairment may call the Division via T.D.D at the Florida Relay System by dialing 711 or (800)955-8771.

(6) Disability benefits – DROP participants shall not be eligible for disability benefits as described in section 121.091(13)(c)8., F.S.

(7) DROP benefits shall be subject to the provisions of section 121.091(13), F.S., pertaining to assignment, execution, or attachment of benefits, and forfeiture of benefits, respectively. The Alternate Payee of a DROP participant as a result of an approved Qualified Domestic Relations Order may designate a beneficiary on Form DP-12, (Rev. 08/26), https://flrules.org/Gateway/reference.asp?No=Ref-19517, Florida Retirement System Pension Plan Beneficiary Designation Form for the Alternate Payee of a DROP Participant, herein adopted by reference, in the event the Alternate Payee predeceases the DROP participant during the period of DROP participation. Form DP-12 may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

(8) Death Benefits – Death benefits under the DROP shall be administered pursuant to section 121.091(13)(d), F.S.

(9) Termination of Employment for Participants Other than Elected Officers – A DROP participant, except for an elected officer participating in any membership class, must terminate employment on or before the preselected resignation date specified on Form DP-ELE or, if applicable, on Form DP-EXT, and will be required to submit to the Division a completed Form DP-TERM, effective 08/26, https://flrules.org/Gateway/reference.asp?No=Ref-19518, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Termination Notification, herein adopted by reference, upon termination from the DROP. Form DP-TERM may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771. If a participant fails to terminate on or before the DROP termination and resignation date:

(a) Retirement and DROP participation are voided as provided in section 121.091(13)(c)5.d, F.S.

(b) The DROP accumulation and any monthly retirement benefits received are forfeited.

(c) No interest will be paid on contribution refunds to employers that come as a result of a member voiding DROP.

(d) The beneficiary designated in subsection (2) will remain the named beneficiary on the most recent Form FST-12, unless revised as specified in subsection 60S-4.011(4), F.A.C.

(e) Should the DROP participant and his or her respective employer rescind the DROP participant’s resignation such that the participant’s employment shall continue beyond the rescinded resignation date, the DROP participant and his or her respective employer shall notify the Division on Form DP-VOID, (Rev. 08/26), https://flrules.org/Gateway/reference.asp?No=Ref-19519, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Void Form, herein adopted by reference, no earlier than three months prior to, but no later than, the rescinded resignation date. Form DP-VOID may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

(10) Termination of Employment for Participants in the Elected Officers’ Class – A member of the Elected Officers’ Class participating in the DROP may continue to serve in elected office upon reaching the DROP end date as follows:

(a) For such officer who began participating in the DROP on or after July 1, 2002 through June 30, 2010:

1. Such officer shall be required to submit to the Division a completed Form DP-TEOC-2, (08/26), https://flrules.org/Gateway/reference.asp?No=Ref-19520, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officer DROP Termination Notification, herein adopted by reference, upon termination from DROP. Form DP-TEOC-2 may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

2. No additional DROP benefits shall accumulate on behalf of the officer after the officer’s DROP end date, however, cost-of-living adjustments and interest shall continue to accrue as provided in subsection (3) until the officer ceases holding office and satisfies the definition of termination provided in section 121.021(39), F.S.

3. The officer shall not be a renewed member in the Elected Officers’ Class and the employer shall not make retirement contributions on the officer’s behalf after the officer’s DROP end date, however, the employer shall submit health insurance subsidy contributions until the officer ceases holding elective office.

4. Monthly retirement benefit payments shall be paid to the officer beginning the first month after the officer ceases holding office and satisfies the definition of termination provided in section 121.021(39), F.S.

5. After satisfying the definition of termination, such officer who is reemployed or reelected shall be subject to the reemployment limitations provided in section 121.091(9), F.S.

(b) For such officer who began participating in the DROP on or after July 1, 2010:

1. Such officer shall be required to submit to the Division a completed Form DP-TEOC-2, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officer DROP Termination Notification, as adopted by reference in paragraph (a), upon termination from DROP.

2. No additional DROP benefits or interest shall accumulate on behalf of the officer after the officer’s DROP end date, however, cost-of-living adjustments shall continue to accrue as provided in subsection (3) until the officer ceases holding office and satisfies the definition of termination provided in section 121.021(39), F.S

3. The officer shall not be a renewed member in the Elected Officers’ Class and the employer shall not make retirement contributions on the officer’s behalf after the officer’s DROP end date, however, the employer shall submit health insurance subsidy and unfunded actuarial liability contributions until the officer ceases holding elective office.

4. Monthly retirement benefit payments shall be paid to the officer beginning the first month after the officer ceases holding office and satisfies the definition of termination provided in section 121.091(39), F.S.

5. After satisfying the definition of termination, such officer who is reemployed or reelected shall be subject to the reemployment limitations provided in section 121.091(9), F.S.

(11) Termination of Employment for Participants who are Elected Officers not in the Elected Officers’ Class – Effective July 1, 2009, a member who is an elected officer participating in the DROP who is not in the Elected Officers’ Class may continue to serve in elected office upon reaching his or her DROP end date as provided in subsection (10).

(12) DROP Distribution – Upon the conclusion of DROP participation, a member’s total accumulated benefits shall be distributed pursuant to section 121.091(13)(c)5., F.S. Prior to the distribution of accumulated DROP benefits, the Division must receive:

(a) From the non-elected participant, the Form DP-TERM, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Termination Notification, adopted in subsection (9), signed by both the participant and employer or employers, verifying termination of employment.

(b) From the elected officer participant, Form DP-TEOC-3, (08/26), https://flrules.org/Gateway/reference.asp?No=Ref-19521, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Elected Officer Employment Termination Notification, herein adopted by reference, signed by both the participant and employer or employers, verifying termination of employment. This form may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

(c) From the participant who chose Option 4, Form DP-Joint, (Rev. 08/26), https://flrules.org/Gateway/reference.asp?No=Ref-19522, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Joint Annuitant Verification, herein adopted by reference, signed by the participant verifying that his or her joint annuitant is still living and eligible for the full DROP Payout and the unreduced continuing monthly benefit. This form may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500. Individuals with a hearing or speech impairment may call the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

(d) From all participants, Form DP-PAYT, effective 08/26, https://flrules.org/Gateway/reference.asp?No=Ref-19523, Florida Retirement System Pension Plan Deferred Retirement Option Program (DROP) Selected Payout Method, herein adopted by reference, submitted by the participant. This form may also be obtained from the forms page of the Division’s website, www.frs.MyFlorida.com, or by calling the Division Toll Free at (844)377-1888, if calling from outside the Tallahassee calling area or locally at (850)907-6500, or if hearing or speech impaired by calling the Division via T.D.D. at the Florida Relay System by dialing 711 or (800)955-8771.

(e) If the participant has died, Form FST-11g, Florida Retirement System Pension Plan Application of Beneficiary for Benefit Payment, as adopted in paragraph 60S-4.008(1)(a), F.A.C., must be completed by his or her beneficiary, notifying the Division as to which of the methods of payment he or she has chosen.

(f) If a direct rollover or a partial lump sum and rollover are requested, Form DP-PAYT must be submitted to the Division. A participant who elects a rollover must have the rollover paid directly to the custodian of an eligible retirement plan as defined in s. 402(c)(8)(B) of the Internal Revenue Code. Eligible retirement plans include, but are not limited to:

1. An Individual Retirement Account as described in s. 408(a), Internal Revenue Code.

2. An Individual Retirement Annuity as described in s. 408(b), Internal Revenue Code, excluding an endowment contract.

3. A Qualified Plan – a stock bonus, pension, or profit sharing plan of an employer (both defined contribution and defined benefit plans) established in accordance with s. 401(a), or 401(k), Internal Revenue Code, for the sole and exclusive benefit of employees or their beneficiaries, excluding designated 401(k) and 403(b) Roth Individual Retirement Accounts.

4. An Annuity Plan as described in s. 403(a), Internal Revenue Code.

5. An eligible deferred compensation plan described in s. 457(b), Internal Revenue Code which is maintained by an eligible employer as described in s. 457(e)(1)(A), Internal Revenue Code.

6. An annuity contract as described in s. 403(b) of the Internal Revenue Code.

For purposes of the above direct rollover provisions, any portion of an eligible rollover distribution that consists of after-tax employee contributions which are not includible in gross income may be transferred only to: (1) a traditional individual retirement account or annuity described in sections 408(a) or (b) of the Code (a “traditional IRA”) or a Roth individual retirement account or annuity described in section 408A of the Code (a “Roth IRA”); or (2) to a qualified plan or an annuity contract described in sections 401(a) and 403(b) of the Code, respectively, that agrees to separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

If the DROP participant dies and the surviving spouse wishes to roll over the DROP account, it can only be rolled over into an arrangement as cited in subparagraphs 1.-6. of this paragraph as described in section 402(c)(9), Internal Revenue Code. However, if the DROP participant dies and the surviving non-spouse beneficiary wishes to roll over the DROP account, it can only be rolled over into an Inherited Individual Retirement account arrangement as cited in sub-subparagraph a. of this subparagraph as described in s. 402(c)(11), Internal Revenue Code.

(13) Federal Limits – Benefits accumulating in the DROP are not subject to federal benefit limitations specified in s. 415 of the Internal Revenue Code, until DROP participation ends and the participant begins receiving his or her monthly retirement benefits. The amount of the accumulated DROP benefit at the time the member ceases the DROP is amortized over the member’s expected lifetime, in the manner required by the Internal Revenue Code, and the annualized value of the DROP account reduces the federal maximum annual benefit the member is entitled to receive.

Rulemaking Authority 121.031, 121.091(13)(k) FS. Law Implemented 121.091, 121.131 FS. History–New 9-16-03, Amended 4-5-12, 3-25-13, 5-19-14, 4-17-17, 9-30-18, 8-6-26.

Effective: 8/6/2026.