FRS glossary

AFC (Average Final Compensation)

The average of the highest-paid years of compensation used to calculate your FRS pension. For pre-2011 enrollees, the highest 5 years are averaged. For post-2011 enrollees, the highest 8 years are averaged. Compensation includes base salary, qualifying overtime, and supplemental pay.

Related: Multiplier, Years of Service

Multiplier

The percentage of AFC earned per year of creditable service. For FRS Special Risk Class members, the multiplier is 3% per year. The pension formula is: Years × Multiplier × AFC.

Related: AFC, Special Risk Class

Special Risk Class

A membership class in the Florida Retirement System for firefighters, law enforcement officers, correctional officers, probation officers, and paramedics/EMTs. Special Risk members earn benefits at a higher 3% multiplier and have lower normal retirement thresholds than Regular Class members.

DROP (Deferred Retirement Option Program)

A program that allows eligible FRS members to retire on paper while continuing to work. The pension is "frozen" at DROP entry and the monthly benefit accumulates in an interest-bearing account. At DROP termination, the member receives the accumulated lump sum and begins drawing the monthly pension. As of 2023 legislation, DROP can last up to 96 months.

Related: Lump Sum, COLA

COLA (Cost of Living Adjustment)

An annual adjustment to the pension benefit. For FRS members, COLA only applies to service earned before July 1, 2011. The proration formula is: (pre-2011 years / total years) × 3%. Effective 7/1/2026, SB 7028 establishes a minimum 1.5% COLA for eligible Special Risk retirees.

Vesting

The minimum years of service required to be entitled to a future pension benefit. Pre-2011 FRS Special Risk enrollees vest at 6 years; post-2011 enrollees vest at 8 years.

Enrollment Era

Whether you became an FRS member before July 1, 2011 ("pre-2011") or on or after that date ("post-2011"). The era determines your AFC period (5 vs 8 years), vesting (6 vs 8 years), and DROP interest rate (6.5% vs 4%).

Normal Retirement

The age and service requirements at which a member can begin receiving a full, unreduced pension. For Special Risk: age 55 with 6 (pre-2011) or 8 (post-2011) years of service, OR 25 (pre-2011) or 30 (post-2011) years of service regardless of age.

457(b) Plan

A tax-advantaged deferred compensation plan available to public-sector employees. Governmental 457(b) plans permit penalty-free withdrawals after separation from service at any age, and have a special "final three years" catch-up provision before normal retirement age.

Related: Public Safety Officer Penalty Exemption

Public Safety Officer Penalty Exemption

Public Safety Officers (which includes firefighters, law enforcement officers, and corrections officers) may withdraw from a governmental 457(b) plan after separation from service at age 50 or later without the 10% IRS early-withdrawal penalty that normally applies to most retirement accounts before age 59½.