7. Pension Plans (continued)

Board of County Commissioners Meeting · 2026-04-14 · agenda_item

This agenda item concerns the Deferred Retirement Option Program (DROP) for employees eligible for normal retirement under the Florida Retirement System (FRS) Plan. The program allows eligible employees to defer monthly benefit payments for up to 8 years, or 10 years for certain instructional staff, while continuing employment. During this period, deferred benefits are held in the FRS Trust Fund and earn interest. The net pension liability does not include DROP participants as they are considered retired. Benefits are calculated based on age, years of service, average final compensation, and service credit, with specific rules for calculating average final compensation and cost-of-living adjustments depending on when the employee was first enrolled in the FRS. This item is currently under review as part of the Board of County Commissioners meeting. The scope of work involves financial reporting and actuarial analysis related to pension plans. Local businesses in financial services, accounting, and legal services may find opportunities related to the ongoing management and reporting of these pension plans.