FRS Special Risk pension and DROP calculator
For most FRS firefighters the pension math is simple: years of Special Risk service, times 3 percent, times your average final compensation. Twenty five years at an average final compensation of $100,000 is 75 percent, or $75,000 a year before any survivor option.
The calculator below runs that formula, applies the early retirement reduction if it applies to you, projects a DROP balance at the current 4 percent rate, and adds your Health Insurance Subsidy. It is an estimate for planning conversations. Your official FRS benefit estimate is the number to rely on.
Estimate your pension
Got it. Your estimate is on its way.
Here's what you ran today, so you have it now too:
Questions about your own numbers? Call me at 305 608 2690 (voice only) or email mark.buckley@prudential.com.
How the formula works
| Piece | What it means |
|---|---|
| Years of service | Your creditable Special Risk service. Each year is worth 3 percent of your average final compensation. |
| Average final compensation | The average of your highest 5 fiscal years if you joined FRS before July 1, 2011, or your highest 8 if you joined on or after. Only up to 500 hours of annual leave can count toward it. |
| Normal retirement | Age 55 vested, or 25 years of Special Risk service at any age. A path at age 52 with 25 years of combined Special Risk and military service also exists. |
| Early retirement | If you are vested but have not reached normal retirement, the benefit is reduced 5 percent for each year you are under 55. |
| Payment option | Option 1 pays the most per month and stops at your death. Options 2, 3 and 4 pay less so the money can continue to a survivor. That choice is permanent once you cash a check or enter DROP. |
The early retirement trap is the one worth a second look. A firefighter who started at 22 reaches 25 years at 47, which is normal retirement with no reduction. A firefighter who started at 30 and leaves at 50 with 20 years takes a 25 percent cut for life. Same job, very different check. Plug both into the calculator and you will see it.
How DROP adds up
When you enter DROP, your monthly benefit is set and stops growing. Instead of being paid to you, it is deposited into your DROP account every month while you keep working, for up to 96 months. For DROP beginning on or after July 1, 2023, the account earns a 4 percent annual effective rate, compounded monthly.
That trade is the heart of the DROP decision. Staying out of DROP adds 3 percent of your average final compensation to your pension for every extra year you work, and your average final compensation may keep rising. Entering DROP freezes the pension and builds a lump sum instead. Neither is automatically better. Run both in the calculator, then look at how DROP works and how the payout is taxed before you sign the DP-ELE.
Your survivor option changes every number here
The calculator shows Option 1. If you choose an option that continues payments to your spouse, the monthly amount is lower, and the reduction depends on both of your ages. FRS will calculate it for you in an official estimate. How the four options work.
Get the real numbers
- Request an official estimate through MyFRS or the Division of Retirement, for more than one retirement date.
- Check your average final compensation against your own pay records. A small error in your salary history follows you for life.
- Get your service credit in writing, including any military or prior service you purchased.
- Ask for the survivor option amounts in dollars, with your spouse in the room.
Common questions
How is an FRS Special Risk pension calculated?
Years of creditable Special Risk service, times 3 percent, times your average final compensation. Twenty five years at an average final compensation of $100,000 is 75 percent, or $75,000 a year under Option 1. The benefit cannot exceed 100 percent of average final compensation.
What is average final compensation in FRS?
The average of your highest 5 fiscal years of salary if you first joined FRS before July 1, 2011, or your highest 8 fiscal years if you joined on or after that date. Up to 500 hours of annual leave can count toward it.
When can an FRS Special Risk firefighter retire without a reduction?
At normal retirement: age 55 once vested, or after 25 years of Special Risk service at any age. A path at age 52 with 25 years of combined Special Risk and military service also exists. Vesting is 6 years for members who joined before July 1, 2011 and 8 years for those who joined on or after.
How much is the FRS early retirement reduction?
A vested member who retires before reaching normal retirement has the benefit reduced 5 percent for each year under the normal retirement age, which is 55 for Special Risk. The reduction is permanent.
How much does FRS DROP earn?
For DROP beginning on or after July 1, 2023, the DROP account earns a 4 percent annual effective rate, compounded monthly, and participation can last up to 96 months. Your monthly benefit is fixed when you enter DROP and is deposited into the account each month.
Is this calculator the same as my official FRS estimate?
No. It is a hypothetical educational estimate that assumes all Special Risk service, Option 1 and no cost of living adjustments. Request an official benefit estimate from the Florida Division of Retirement before making any decision.
Official resources
This calculator and page are for general educational and informational purposes only. Results are hypothetical estimates based on simplified assumptions, are not guarantees, and are not individualized investment, tax, legal or Florida Retirement System advice.
Benefit formulas, eligibility rules and DROP interest rates are set by Florida law and can change. Your actual benefit depends on your official service and salary history, payment option, retirement date and the law in effect. Request an official benefit estimate from the Florida Division of Retirement before relying on any figure here.
Mark Buckley is not affiliated with, endorsed by, or acting on behalf of the Florida Retirement System or the Florida Department of Management Services.
Investing involves risk, including possible loss of principal.