As retirement approaches, many FRS members find themselves asking the same core questions. After years of service, it’s natural to want clarity before making such an important life transition.
Here are five of the most common questions FRS members ask in the months leading up to retirement — and what you should know as you prepare.
If you participated in the Deferred Retirement Option Program (DROP), your account balance stops growing once you exit. At that point, you’ll need to decide what to do with the lump sum.
Options include: rolling it into an IRA, leaving it in the FRS Investment Plan, or taking a distribution.
Key considerations: taxes, timing of withdrawals, and how the money will fit into your broader income plan.
💡 Important: DROP funds do not automatically convert into an investment strategy — you need a plan for how to use the funds.
Yes, but there are specific rules depending on your retirement path:
Pension Plan retirees must wait 6 months before returning to FRS employment.
Private sector jobs are generally not restricted.
Violating reemployment rules can lead to suspended benefits, so it’s important to confirm details before accepting post-retirement work.
When you retire under the Pension Plan, you’ll choose one of four benefit options (1–4). This decision affects:
The amount you receive monthly.
What your spouse or beneficiary may receive after your passing.
Once selected, the choice is permanent. Reviewing your family’s needs and other resources before deciding is crucial.
Not necessarily.
Some retirees roll over DROP or Investment Plan balances into an IRA for broader investment flexibility.
Others leave funds in the FRS Investment Plan to avoid immediate decisions.
Each choice has pros and cons involving fees, investment options, and required distributions. What matters most is aligning your decision with your goals, tax situation, and comfort level.
This is one of the most common concerns.
For service earned before July 1, 2011, you may have a fractional COLA applied.
For service earned after that date, there is no COLA adjustment.
This means many pensions remain flat while expenses rise, making it important to plan for supplemental income sources like DROP, investments, or part-time work.
The final months before retirement are filled with important decisions. Understanding how DROP works, how reemployment rules apply, what your survivor options mean, and how inflation affects your pension can give you clarity as you step into this new chapter.
Your FRS benefits are a strong foundation, but retirement success depends on how you coordinate them with your overall plan.