The Deferred Retirement Option Program (DROP) allows FRS Pension Plan participants to retire without terminating employment for up to five years while your retirement benefits continue to accumulate and earn interest.
You can participate in DROP when you reach your normal retirement (based upon your years of service or age). Administrators and Support Personnel who do not join DROP within 12 months of becoming eligible to participate will lose their opportunity to join DROP. For additional guidelines on normal retirement age, see the DROP Guide link below. Investment Plan members are not eligible for DROP.
Once you enter DROP, you stop earning additional years of service credit towards a future benefit. You have your retirement benefit calculated at the time your DROP period begins and your monthly retirement benefits accumulate in the FRS Trust Fund earning interest while you continue to work. During this period of employment, you no longer contribute 3% of your salary towards retirement.
VACATION AND SICK PAY- PCS SPECIAL PAY PLAN THROUGH BENCOR;
FREQUENTLY ASKED PAYROLL QUESTIONS;
- What percentage of sick time do I get paid when I retire?
- How does the sick time transfer to Bencor when I am in DROP?
- What happens if I have more than 60 days vacation (12 month employees)?
- When can I expect to receive payment of my sick/vacation payout?
For additional frequently asked questions and answers regarding your sick and vacation pay, please click here FAQ
TERMINATING FROM DROP
Upon termination, your DROP account is paid to you as a lump sum payment, a rollover or a combination partial lump sum payment and rollover. Monthly benefits are paid to you in the amount as calculated upon entry into DROP, plus any applicable cost of living adjustments.
DROP-DP-11 DROP Application