Frequently Asked Questions (FAQs)
See below for helpful answers to some of the most frequently asked questions surrounding Bencor DROP Support and how we can assist you on your journey through retirement.
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DROP Program
General Questions
What Is The Deferred Retirement Option Program (DROP)?
In the DROP Program, you still get paid your salary, but the FRS also deposits your pension into a separate account for each year that you work.
Note: New legislation allows ALL DROP participants to extend up to 8 years.
How Does DROP Work?
A rollover IRA facilitates the seamless transfer of funds from a former employer’s retirement plan, typically a 401(k), to a new IRA. Executed properly, this transition incurs no financial penalties for early withdrawal or taxes, offering an expanded array of investment options.
When Am I Eligible To Enter DROP?
Eligible FRS members may participate in DROP when they are vested and have reached their normal retirement date*.
*Note: If you enrolled in the FRS prior to July 1, 2011, your normal retirement age is 62 with at least 6 years of service or any age with 30 years of service. If you enrolled in the FRS on or after July 1, 2011, your normal retirement age is 65 with at least 8 years of service or any age with 33 years of service.
What Are Interest Rates In DROP?
You will currently earn an interest rate of 4% while the money is in the DROP account.
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Preparing to Retire - Making it to the Finish Line
You are nearing the finish line in the marathon of your career. Each step towards this new phase of life can be equal parts exciting and scary. However, BENCOR is here to help you every step of the way until you cross the finish line of retirement and beyond
FRS Questions
What Are My FRS Pension Options?
The Florida Retirement System (FRS) offers four options to choose from when deciding on Pension distribution for yourself and your chosen beneficiary or joint annuitant.
- Option 1: A basic monthly option yielding your maximum monthly benefit
- Option 2: A reduced monthly lifetime option that provides your beneficiary with payment if you die within 10 years of retirement or DROP date
- Option 3: A reduced monthly lifetime option that, upon your death, will benefit your joint annuitant
- Option 4: An adjusted monthly option that is reduced by two-thirds upon either the death of your joint annuitant or yourself
Can I Return To Work With An FRS Employer After Being In DROP?
There are no limits on working for an FRS employer after you have been retired for 12 calendar months.
Where Does FRS Send My DROP Funds?
The FRS will provide you with form DP PAYT so that you can direct your DROP rollover funds to a custodian of your choice.
Am I Covered For Social Security While Participating In DROP?
Yes, provided your retirement plan included Social Security prior to your participation in DROP.
Tip: If you plan to work and participate in DROP past age 65, you may need to enroll in Medicare when you first turn age 65 even though you will not begin receiving Social Security benefits until you terminate employment. If you enroll in Medicare late, you may have to pay higher premiums.
DROP Exit & Other Considerations
How Long Will It Take After Retirement To See My DROP Funds?
The FRS will process your DROP rollover the month following your Termination Date.
How Will I Know When My DROP Money Is In My Account?
You will receive a letter from the FRS when they mail your DROP rollover check to BENCOR. Within 7-10 business days of receiving the FRS letter, BENCOR will send you a deposit confirmation.
Where Does My Remaining Sick Pay Balance Go?
After you exit DROP your unused sick pay balance will automatically be deposited into your BENCOR plan.
What Happens If I Want to Leave DROP Early?
If you choose to exit DROP early, then your benefit will reflect the time that you participated.
How Much Time Do I Have After I Exit To Decide What To Do With My DROP Funds?
You have 60 days starting from your Termination Date to decide what to do with your DROP rollover.
