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Time Extension For Higher Pension In Palm Beach
Category:
State:
Multi-State
County:
Palm Beach
Control #:
US-0018LTR
Format:
Word;
Rich Text
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Description
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FAQ
Effective July 1, 2024, HB 151 allows retirees to be reemployed with an FRS employer and receive both compensation and retirement benefits after meeting the termination requirements (six calendar months after date of termination) in Section 121.021(39), Florida Statutes.
Extend the maximum time a member can participate in DROP from 5 years to 8 years, regardless of class membership and occupation, and from 8 years to 10 years for certain K-12 instructional personnel. Increase the DROP interest rate from 1.3 percent to 4 percent on DROP accumulations held on or after July 1, 2023.
Q: Can I retire in Florida on $3,000 a month? A: Yes, ing to a GOBankingRates study, there are several cities in Florida where you can live on $3,000 — or even less — each month, including Pensacola and Panama City.
You must meet the following criteria in order to begin receiving your retirement benefit. You must be vested. If you enrolled in the FRS prior to July 1, 2011, you must have 6 years of service to vest. If you enrolled in the FRS on or after July 1, 2011, you must have at least 8 years of service to vest.
What are some disadvantages of DROP? One disadvantage of participating in a DROP plan is that the monthly pension an employee receives will be substantially lower than the amount the employee would receive had the employee retired under a normal retirement calculation performed at the end of the DROP period.
HB 151 has passed the House. Governmental Oversight and Accountability Committee.
Deferred Retirement Option Program (DROP) Expansion 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.
For employers, DROP plans can be a way to retain experienced employees who might otherwise retire. If you join the DROP before you reach full retirement age, you may face reduced pension payments because you're locking in a lower benefit.
What are some disadvantages of DROP? One disadvantage of participating in a DROP plan is that the monthly pension an employee receives will be substantially lower than the amount the employee would receive had the employee retired under a normal retirement calculation performed at the end of the DROP period.
After July 1, 2023, the interest rate is now 4 percent for all contributions on or after that date. Benefits on deposit for less than one month or after the month in which you end your DROP participation do not earn interest.
