FRS Retirement Mistakes to Avoid: 7 Costly Errors

1. Missing the 30-Day Effective-Date Window

If the Division of Retirement receives your completed Form FR-11 within 30 days of your termination date, your effective retirement date is the first of the month following termination. Miss that window and your effective date shifts to the first day of the month following the Division's receipt of the form. Every month lost means a month of pension payments you never recover.

The fix is simple: file Form FR-11 during the six-month early filing window, well before your last day on payroll.

2. Forgetting the Spousal Acknowledgment Form

Married members who select Option 1 or Option 2 must submit a notarized Form SA-1 — the Spousal Acknowledgment. If your spouse refuses to sign or you simply forget, the Division won't process your retirement application. Some members discover this weeks after terminating, when the 30-day clock is already ticking.

Have the conversation with your spouse about option selection early. Schedule the notarization before your last workday, not after.

3. Leaving Service Credit Purchases Unpaid

Military service, out-of-state public employment, previously refunded FRS contributions, and authorized leaves of absence can all be purchased as additional service credit. But the balance must be paid in full before your effective retirement date or DROP start date. Any amount unpaid at retirement is forfeited permanently — you cannot add it to your pension formula after the fact.

Where an optional service-credit purchase accrues interest, the rate is 6.5% annually, compounded once a year on the remaining balance as of June 30. For refunded FRS service, interest runs from the date of refund.

4. Choosing Your Payout Option Without Running the Numbers

Options 1 through 4 are actuarial equivalents — they redistribute the same total benefit value across different scenarios. Option 1 gives you the highest monthly check. Option 3 provides lifetime income for your surviving spouse at a reduced monthly amount.

The difference between Option 1 and Option 3 can be 10% to 20% of your monthly benefit, depending on the age gap between you and your joint annuitant. Over a 25-year retirement, that monthly difference compounds into six figures. Request a detailed comparison from the MyFRS Financial Guidance Line before committing.

Once you cash or deposit your first pension check, the option selection is permanent. There is no appeal, no cooling-off period, and no exception.

5. Working for an FRS Employer During the 6-Month Restriction

After retirement or DROP exit, you must terminate all employment relationships with and cease providing services to FRS employers for six full calendar months. This includes part-time, temporary, OPS, substitute teaching, and services through a staffing agency. Volunteer services meeting the definition in Section 121.091(15), Florida Statutes, are excluded.

An employment relationship with an FRS employer during this period may void your retirement. You and the employer may be held jointly and severally liable to repay all retirement benefits received, including DROP accumulations or payouts.

Working for private employers, federal agencies, or public employers in other states carries no restriction at any point after retirement.

6. Ignoring the HIS Application

The Health Insurance Subsidy — $7.50 per year of service per month — is not automatic. You must file Form HIS-1 after receiving your first pension payment and provide certification of active health insurance coverage. If you delay filing, HIS payments are only retroactive up to six months.

Members who wait a year to file leave money on the table. Submit HIS-1 as soon as the Division mails your Retiree Packet.

7. Relying on Outdated DROP Information

Articles and advisor materials written before July 2023 cite DROP rules that no longer exist: 60-month participation limits, 1.3% interest rates, and mandatory 12-month entry windows. Senate Bill 7024 changed all of these. Current rules allow 96 months of participation at 4.0% annual interest with no restrictive entry window.

Making DROP entry or exit decisions based on pre-SB 7024 numbers can cost you years of accumulation or cause you to skip DROP entirely when it would have been advantageous.

The Florida FRS Retirement Guide walks through each of these decision points with checklists and worksheets to prevent costly errors.

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