Florida Retirement System Podcast

Don talks about whether you should use all of your PTO, cash it out, or roll it into your deferred comp 457, TSA 403(b), BENCOR account, or other plan that is available to you at retirement.

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In this episode, Don discusses one of the best features of the Florida Retirement System, the Deferred Retirement Option Program. 

FRS DROP is a great feature for Florida public employees where they let you pay your pension into a separate account while they continue to work!

Don and Alex are discussing the 4 Pension Options you can choose from when you retire from the Florida Retirement System. FRS Pension Option 1 is a lifetime payment option for your life only. 

Don Anders and Alex Dingman continue with your Pension Options in the Florida Retirement System, focusing today on Option 2.

Don and Alex are discussing the 4 Pension Options you can choose from when you retire from the Florida Retirement System. FRS Pension Option 3 is a lifetime payment option for both the retiree and their spouse. This option is for spousal benefit only, and the reduction is based on the spouse’s life expectancy.

Don and Alex are discussing the 4 Pension Options you can choose from when you retire from the Florida Retirement System. Option 4 is a lifetime option for both participant and spouse, but if either the participant OR their spouse dies the pension is reduced by 1/3 for the rest of the surviving spouse’s life. Like option 3, this option payout is based on the participant’s spouse’s life expectancy.

In this episode, Don and Alex discuss the FRS Investment Plan. It's a defined contribution plan, in which employer and employee contributions are defined by law, but your ultimate benefit depends in part on the performance of your investment funds.

Don and Alex get into the first DROP payout option, which is a lump-sum cash-out option. As most people know, the FRS DROP account is pre-tax money, meaning that distributions to the participant is a taxable event. The FRS will send 80% of your total DROP balance to you and 20% of the total DROP balance to the IRS for taxes.

Don and Alex discuss the 2nd of the 3 FRS DROP rollover options is the 100% Rollover option. Our office likes to call it the “Stop, DROP, and Roll” option.

Don and Alex discuss the final of the 3 FRS DROP rollover options, which is what we refer to as the "Alaskan Cruise" Option. The name is in reference to how you can take out a specific amount for your personal use and rolling over the rest for the future. 

Don and Alex Dingman discuss how if you get a Health Insurance Subsidy under the Florida Retirement System, you get $5 per year of service and how you can set that up to your benefit. 

Finishing off this podcast series, Don emphasizes the possibilities and choices you still have with your financial plans in and throughout retirement. 

Don Anders discusses the recent Florida Senate Bill 84 that was passed on the Senate but then died on the House floor.

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