Police/Fire Pension

The FRS Pension Plan Special Risk Category

The FRS Pension Plan is a defined benefit plan that uses your income, years of service, and a 3% multiplayer to determine a monthly benefit in retirement. Plan differences will vary slightly based on hire date, but the basics computation of the plan is as follows:

*Years of Service x 3% of Average annual compensation for highest 5 years of salary during tenure = Annual benefit amount.

For example, Imagine you were to earn an average highest five years of compensation of $75,000, and work for the FRS for 25 years. Your retirement benefit could be calculated like this: 25 Years x 3% - 75% of $75,000 average income = $56,250 annual retirement benefit.

It is also important to note that years worked prior to 2011 will also include an annual cost of living adjustment towards your annual benefit in retirement.

Another benefit of the pension plan is DROP (Deferred Retirement Option Program). DROP is a continuation of service for up to 5 years after a member enters the program. When entering DROP, the member's pension credits are stopped and calculated, and the monthly benefit is started. Instead of paying this benefit to the member directly, the funds are placed into the FRS trust fund where they accumulate tax deferred until the member retires from the DROP program where they are then paid to the member or can be rolled over.

If you have questions about your pension plan, income planning for your pension, or DROP, you can schedule a 15 minute meeting below and we will be happy to help assist you.


*For members hired after July 1st 2011, your average final compensation will be based on your highest 8 years of compensation.

This hypothetical example is for illustrative purposes only, and its results are not representative of any specific investment or mix of investments. Actual results will vary