10 Things to Consider
1)What is DROP?
It's an acronym for the Deferred Retirement Option Plan (DROP). DROP allows you to retire and still be employed by a Florida Retirement System agency for up to 60 months, in most cases.
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2) When can I join the DROP program?
You can join DROP at your normal retirement date, usually age 62 with six years of service or 30 years of service at any age. |
3) How can I receive my accumulated DROP funds at separation of service?
There are a variety of ways to receive your DROP account including a lump-sum payment, partial withdrawal, rollover to another qualified plan or rollover to an IRA. This is an important decision with many factors to consider. |
4) What is the best way for me to use my DROP funds?
Everyone has a different need for the DROP account monies. A careful review and analysis of your other sources of retirement income should occur. |
5) Can I continue to work somewhere else after my DROP period ends?
Yes. You are free to work with another employer. |
6) What factors should I consider when thinking of investing my DROP accounts?
| Important factors include your current and future income tax brackets, when you will need the DROP money, and in what form. |
7) Should I seek professional advice in my investment choices?
Many people consider using a qualified financial advisor to review investment option choices. |
8) What experience should I seek in an investment provider?
Experience in the field of retirement income planning is very important. You should seek an investment advisor with in-depth experience in the fields of retirement planning, income planning, investment planning and estate planning. |
9) What are a few questions to ask a potential investment professional?
How long have you been giving financial advice in this field? What type of clientele do you work with? What licenses and qualifications do you have? |
10) How can my DROP benefits coordinate with future income needs?
The lump-sum payment option may seem like a good first step, but looking at long-term retirement income need is critical, as is a written retirement plan. A proper retirement plan will coordinate your other monthly retirement income sources, such as Social Security, military and other defined benefit programs. |
