FL DROP Advantages & Disadvantages

Contact the Florida DROP

Call: 1-866-352-3767 or
Have a financial advisor contact you

Enrollment in DROP

Submit the following forms to your employer’s retirement office prior to the DROP effective date:

Notice of Election to Participate in the DROP and Resignation of Employment (DP-ELE)
Application for Service Retirement and the DROP - DP-11 for FRS members
Application for Service Retirement and the DROP - DT-11 for TRS members
Application for Service Retirement and the DROP - DS-11 for SCOERS members

Advantages and Disadvantages of a DROP Account

Advantages

1. Simultaneously earn a salary and accumulate retirement income

2. Provide financial security for retirement

3. May provide inheritance for a beneficiary not eligible for a continuing benefit under FRS

4. Accumulate a lump sum

Disadvantages

1. Option must be selected in advance of termination

2. Sets maximum employment date

3. Reduces monthly pension benefit for the rest of your life if you would have continued to contribute under FRS

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.