Benefits
2023 FRS Updates
Effective July 1, 2023, new state laws went into effect resulting in positive changes to our retirement plan benefits.
Deferred Retirement Option Program (DROP) Expansion
DROP is a retirement program within the FRS Pension Plan that allows you to retire and have your FRS benefits accumulate in the FRS Trust Fund earning interest while you continue to work.
DROP was expanded as follows:
- Time Period: The maximum time for eligible members to participate in DROP was expanded from 5 years to 8 years. This includes those currently participating in DROP.
- Election Window: The restricted 12-month election window was removed. There are no longer restrictions on when you can begin participating in DROP. You may enter DROP any time after becoming fully vested and reaching your normal retirement date.
- Interest Rate: The annual interest rate increased from 1.3% to 4%, compounded monthly, for your accrued monthly DROP benefit.
Visit the DROP webpage for more information about enrolling, extending or terminating DROP.
Health Insurance Subsidy Increase
The monthly retiree Health Insurance Subsidy increased from $5 to $7.50 for each year of creditable service. Accordingly, the maximum monthly benefit increased from $150 to $225 and the minimum monthly benefit increased from $30 to $45. These changes apply to current retirees.
Investment Plan Employer Contribution Rates
The contribution rate paid by employers into FRS Investment Plan accounts was increased by 2% in all membership classes.
Special Risk Class Normal Retirement Date
The normal retirement date for Special Risk Class members initially enrolled on or after July 1, 2011, was changed to either 25 years of creditable service or age 55, whichever is earlier.
More Information
To contact the USF Benefits team, please email benefits@usf.edu
Visit the Florida Retirement System (FRS) website at www.myfrs.com