Eligibility


drop178269227To participate in DROP, you must be vested and eligible for normal retirement (based on your years of service or age) as an active member of:

  • The FRS Pension Plan,
  • The Teachers’ Retirement System (TRS), or
  • The State and County Officers and Employees’ Retirement System (SCOERS).

Who is not eligible to participate in DROP?

You cannot participate in DROP if:

  • You retired from a state administered retirement system and after retirement you become reemployed in an FRS-covered position with or without renewed membership.
  • You are a member of the FRS Pension Plan who did not begin DROP participation during your election period and you are not eligible to defer your DROP participation;
  • You are a member or retiree of the FRS Investment Plan.
  • You are a member or retiree of the State University System Optional Retirement Program.
  • You are a member or retiree of the State Community College System Optional Retirement Program.
  • You are a member or retiree of the Senior Management Service Optional Annuity Program (for state employees only).
  • You are a senior manager employed by or retired from a non-state employer and you chose to withdraw from participation in the FRS.
  • You are an elected official and you chose to withdraw from participation in the FRS.

 

When can you begin DROP?

 

You may begin DROP participation in the month you reach your normal retirement date based upon your age, or the month after the month you reach your normal retirement date based upon your years of service.
You also need to be vested. If you are initially enrolled in the FRS before July 1, 2011, you must have six years of service to be vested. If you are initially enrolled in the FRS on or after July 1, 2011, you must have eight years of service to be vested.

 

Normal retirement date requirements for age or service if you were initially enrolled in the FRS before July 1, 2011, are:

 

  • Special Risk Class – age 55 with at least six years of special risk service but less than 25 years of special risk service, age 52 with a total of 25 years of special risk service that include up to four years of purchased wartime military service, or any age before age 55 with 25 years of special risk service. These requirements apply to members of the Special Risk Administrative Support Class who have at least six years of special risk service.
  • Regular Class, Elected Officers’ Class and Senior Management Service Class – age 62 with at least six years of service but less than 30 years of service, or any age before age 62 with 30 years of service. These requirements apply to members of the Special Risk Administrative Support Class who do not have six years of special risk service. If you were initially enrolled in the FRS before July 1, 2011, and reach your normal retirement date based on your years of service before age 57 (age 52 for Special Risk Class members) you may be eligible to defer your DROP participation).

 

Normal retirement date requirements for age or service if you were initially enrolled in the FRS on or after July 1, 2011, are:

  • Special Risk Class – age 60 with at least eight years of special risk service but less than 30 years of special risk service, age 57 with a total of 30 years of special risk service, or any age before age 60 with 30 years of special risk service. These requirements apply to members of the Special Risk Administrative Support Class who have at least eight years of special risk service.
  • Regular Class, Elected Officers’ Class and Senior Management Service Class – age 65 with at least eight years of service but less than 33 years of service, or any age before age 65 with 33 years of service. These requirements apply to members of the Special Risk Administrative Support Class who do not have eight years of special risk service. If you were initially enrolled in the FRS on or after July 1, 2011, and reach your normal retirement date based on your years of service before age 60 (age 55 for Special Risk Class members) you may be eligible to defer your DROP participation; If you reach your normal retirement date while holding an elected office, you may qualify to defer your DROP participation to a future date. Also, if you are employed as K-12 instructional personnel, you may be eligible to defer your DROP participation; If you are a member of one of the closed retirement systems such as the TRS and SCOERS, your normal retirement date varies based on your membership date, class and plan.

 

When should you apply for DROP?

You may apply up to six months before reaching your normal retirement date or DROP deferral date. To maximize your time in DROP, the division must receive your DROP application and election forms no later than the last working day of the month you intend to begin DROP participation. Please send in your DROP application as early as possible. If you apply for DROP after your normal retirement date or after your latest eligible deferral date, but within the first 12 months of your 60-month participation period, your eligible DROP participation is reduced. There is a month-for-month reduction in your maximum DROP participation for each month you delay submitting your application to the division. If you fail to make an election to participate within the 12-month election window, you are no longer eligible to participate in DROP, unless you qualify for one of the exceptions. Example: If your normal retirement date or latest eligible deferral date was July 1, 2014, and you did not make an election to participate in DROP by the last working day in June 2015, you would no longer be eligible to participate in the program unless you qualified for one of the deferral exceptions.