To get the most from the FRS, teachers often work 35 or more years. Since it takes 30 years for most teachers to qualify for the DROP, many of your years are simply spent working without emphasis on what happens at separation.

If you plan early, you can avoid a large gap in your income from working to retirement. Currently after working those 30 years, you are only eligible for 48% of your best 5 year income average. For perspective, if you have an AFC (Average Final Compensation) of $60,000, your Option 1 pension would only be $28,000. Your lifestyle has been based on $60,000 and now you will only earn $28,000 in your pension! If you go into the DROP, those funds can help fill the gap along with your 403(b) and Social Security (depending on when you qualify and choose to start payments).

Is the Investment Plan a better choice? It depends on your income needs, your accumulated balance, and tolerance for risk.

Health Insurance, Medicare, family dynamics, current debt, Married or Single status… all of these topics and much more should be considered in making decisions that could affect you for 20-30 years in retirement.

How do you get answers for all of these questions? I could not find a source, so I wrote “Your FRS”, an easy to understand book which helps FRS members to understand how the system works, how to avoid costly mistakes, and how to get the most from your retirement system.