For members of the Florida Retirement System (FRS), especially those classified under the Special...
Understanding Early Retirement for FRS Special Risk Class Members with 25 Years of Service
For public safety professionals, including firefighters, law enforcement officers, and correctional officers enrolled in the Florida Retirement System (FRS), retirement benefits can look different compared to other employee classes. One key distinction lies in retirement eligibility rules—specifically the ability to retire before age 50 under certain conditions.
Who Qualifies?
Members of the FRS Special Risk Class may become eligible for normal retirement once they reach:
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Age 55 with at least 6 years of special risk service, or
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25 years of special risk service at any age
This means a firefighter or police officer who begins their career early may potentially qualify for retirement in their late 40s or earlier, assuming uninterrupted full-time service.
Why This Matters
Although this eligibility does not guarantee specific financial outcomes, it provides flexibility in planning for a transition out of physically demanding roles at an earlier age than is typical in other career fields.
A few points worth considering:
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Special Risk retirement eligibility is based on service—not age. This makes it possible for individuals to leave their FRS-covered position after 25 years of qualifying service, regardless of whether they are 50 or not.
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Members who qualify under this rule can begin receiving a pension benefit if they separate from FRS-covered employment and meet all retirement requirements.
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Deferred Retirement Option Program (DROP) eligibility is also affected by these service rules. Members with 25 years of service may be able to enter DROP before age 50, depending on their circumstances.
Important Considerations for Younger Retirees
Retiring before age 50 brings unique planning challenges, especially when it comes to accessing retirement funds without penalties. For example:
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If a retiree rolls over DROP or other retirement funds into a traditional IRA, they typically cannot take withdrawals before age 59½ without incurring a 10% early withdrawal tax penalty, in addition to ordinary income tax.
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However, funds rolled into the FRS Investment Plan or a governmental 457(b) plan may offer more flexibility. These plans can allow penalty-free withdrawals after separation from service, regardless of age, for qualified public safety officers who have met the 25 years of service requirement, subject to plan rules.
Because early retirement can limit access to certain types of funds, it’s important to work with a financial professional who understands the nuances of public sector retirement planning. The goal is to structure withdrawals in a way that supports long-term needs while minimizing taxes and penalties.
In Summary
The FRS offers retirement eligibility pathways that reflect the unique demands placed on public safety professionals. For Special Risk Class members who complete 25 years of qualifying service, the ability to retire at any age can be a valuable component of long-term financial and personal planning.
This flexibility, however, comes with decisions that may impact a retiree’s income strategy for decades. Guidance from a qualified financial professional can be helpful when navigating these complex considerations.
Information provided should not be considered as tax advice from GWN Securities, Inc. or it's representatives. Please consult with your tax professional.
