What this calculator estimates
The FRS DROP Calculator projects the lump sum that accumulates in a Deferred Retirement Option Program account between DROP entry and DROP termination. Each month of the projection deposits the monthly pension into the account, applies the statutory DROP interest rate, and — where pre-July 2011 service exists — raises the deposit by the prorated cost-of-living adjustment at each 12-month anniversary. You can enter a known monthly pension directly, or use the quick estimate, which derives the pension at entry from years of service, Average Final Compensation, and class. The figures are estimates for educational purposes based on the values you enter — not a benefit determination from the Division of Retirement.
How the DROP lump sum accumulates
During DROP, the monthly pension is not paid to the member. It is deposited into an interest-bearing DROP account for up to 96 months while the member keeps working and drawing a salary. Interest is credited at an effective annual rate, compounded monthly. As a worked example, a 60-month DROP with a $5,000 monthly pension at a 4.0% annual rate accumulates to roughly $331,000 — about $300,000 of deposits plus about $31,000 of interest. The year-by-year breakdown in this tool shows the deposits, the interest, and the running balance for your own inputs.
Which DROP interest rate applies
The DROP interest rate is fixed by Florida statute according to the date DROP participation begins — not the date of FRS enrollment. Members who began DROP before July 1, 2011 earn 6.5%. For members beginning DROP on or after that date, the rate was raised from 1.3% to 4.0% effective July 1, 2023. Because the rate is statutory, this calculator displays it and does not offer it as an adjustable input.
COLA during DROP
The FRS cost-of-living adjustment continues during DROP, prorated to service earned before July 1, 2011: (pre-2011 years ÷ total years) × 3%. A member whose service is entirely pre-2011 receives the full 3% each July 1; a member with no pre-2011 service receives no prorated COLA during DROP. This calculator applies the prorated formula only. It does not apply the 1.5% Special Risk COLA floor enacted in 2026, which depends on individual eligibility.
What this calculator does not do
This tool projects the DROP account balance itself. It does not apply federal income tax to the lump sum, model a rollover, or weigh DROP against continuing to accrue service credit outside the program. The DROP Exit Strategy tool projects the tax impact of taking the lump sum as cash versus rolling it over, and the DROP explainer covers eligibility, trade-offs, and the termination requirement.
Common questions
- How is an FRS DROP lump sum calculated?
- Each month of DROP participation, the monthly pension is deposited into the DROP account and the account earns interest at the statutory rate, compounded monthly. Where a prorated COLA applies, the monthly deposit increases at each 12-month anniversary. The lump sum at termination is total deposits plus accumulated interest.
- What is the FRS DROP interest rate?
- For members beginning DROP on or after July 1, 2011, the rate is 4.0% effective July 1, 2023 (previously 1.3%). Members who began DROP before July 1, 2011 earn 6.5%. The rate is set by Florida statute based on the DROP participation begin date.
- How long can an FRS member stay in DROP?
- Up to 96 months (8 years) under the 2023 legislation. This calculator lets you set any DROP duration up to that maximum.
- Does the pension keep growing during DROP?
- No. Entering DROP locks in the pension: years of service stop accruing and Average Final Compensation is fixed at the entry date. The monthly amount changes during DROP only through any cost-of-living adjustment that applies.