This form is a sample letter in Word format covering the subject matter of the title of the form.
Time Extension For Higher Pension In Florida
Category:
State:
Multi-State
Control #:
US-0018LTR
Format:
Word;
Rich Text
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Description
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FAQ
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.
To extend your DROP participation, you must obtain authorization from the appropriate authority at your employer and the division must receive your completed Form DP-EXT Page 5 prior to the end of your initial period of DROP participation.
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.
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.
More info
Your employer may grant extensions for any period of time up to 36 months (i.e. , year-by-year or for the entire.The maximum time for a qualified FRS member to participate in DROP increased from 60 to 96 calendar months for all classes. You'll receive an electronic acknowledgment once you. This document is not intended to include every program detail. Complete details can be found in Chapter 121,. The IRS also gives affected taxpayers until May 1, 2025, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. The bill conforms law to the 20242025 General Appropriations Act (GAA) as retirement contributions are included in the GAA. An employee in the Pension Plan is vested upon completing eight years of creditable service (or 6 years if you enrolled in the FRS prior to July 1, 2011).
