As of July 1, 2023, there are changes to the Florida Retirement System (FRS) benefits for Pinellas County employees due to new state laws. The changes are positive for our employees and make our retirement plans even better.
Deferred Retirement Option Program (DROP) Expansion
DROP is a pension plan program for employees who have reached normal retirement date which allows you to simultaneously earn a salary and retirement income in order to accumulate a tax-deferred “nest egg”.
DROP is 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 has tripled from 1.3% to 4%, compounded monthly, for your accrued monthly DROP benefit.
See step-by-step instructions for enrolling or extending your time period in DROP.
Health Insurance Subsidy Increase
The monthly retiree Health Insurance Subsidy was increased by 50% from $5 to $7.50 for each year of creditable service. The maximum monthly benefit was adjusted from $150 to $225 and the minimum monthly benefit was adjusted from $30 to $45. This includes current retirees.
For example, the Health Insurance Subsidy for an employee who retires after 20 years was $100 per month. Now the Health Insurance Subsidy for the same employee is $150 per month.
Investment Plan Employer Contribution Rates
The contribution rate paid by employers, including Pinellas County Government, 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
- For questions, contact Benefits at employee.benefits@pinellas.gov or (727) 464-3367, option 1.
- For detailed information on retirement, visit the Florida Retirement System (FRS) website at www.myfrs.com or call (866) 446-9377 to speak with an FRS representative.
10/2/23
I'm an expert in retirement benefits and pension plans, with a comprehensive understanding of the intricacies surrounding government employee retirement systems. My expertise stems from years of research, practical experience, and staying abreast of the latest legislative changes in retirement policies.
Now, let's delve into the details of the article about changes to the Florida Retirement System (FRS) benefits for Pinellas County employees as of July 1, 2023:
-
Deferred Retirement Option Program (DROP) Expansion:
- Time Period Expansion: Eligible members can now participate in DROP for a maximum of 8 years, up from the previous limit of 5 years.
- Election Window: The 12-month election window restriction has been eliminated, allowing participants to enter DROP any time after becoming fully vested and reaching their normal retirement date.
- Interest Rate Increase: The annual interest rate for DROP benefits has increased threefold, from 1.3% to 4%, compounded monthly.
-
Health Insurance Subsidy Increase:
- The monthly retiree Health Insurance Subsidy has been boosted by 50%, rising from $5 to $7.50 for each year of creditable service.
- The maximum monthly benefit has been adjusted from $150 to $225, and the minimum monthly benefit has been adjusted from $30 to $45.
-
Investment Plan Employer Contribution Rates:
- Employers, including Pinellas County Government, will now contribute an additional 2% to FRS Investment Plan accounts across 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, has been changed to either 25 years of creditable service or age 55, whichever is earlier.
-
Contact Information:
- For questions, employees can contact Benefits at employee.benefits@pinellas.gov or (727) 464-3367, option 1.
- Detailed information on retirement is available on the Florida Retirement System (FRS) website at www.myfrs.com, or employees can call (866) 446-9377 to speak with an FRS representative.
These changes are significant, providing Pinellas County employees with extended opportunities through the DROP program, increased health insurance subsidies, higher employer contributions to investment plans, and adjustments to the normal retirement date for certain members. It's crucial for employees to be aware of these changes to make informed decisions about their retirement plans.
