Updated October 7, 2026. Quick answer: A City of Tampa general employee in Division B of the General Employees’ Retirement Fund is vested after six years and picks one of five retirement paths: longevity at 62, early at 55 with a 5% cut for each year short of 62, deferred, disability, or DROP. Most options must be chosen before separation. There is no joint-and-survivor election in the documents read: a married retiree’s spouse receives 50% of the accrued pension. A DROP balance can be rolled over, taken as a lump sum less 20% federal withholding, or split.
Tampa firefighters and police officers belong to a separate city fund with its own rules: Tampa fire and police pension decisions.
What this page covers and what it does not
This page works from seven documents published by the City of Tampa General Employees’ Retirement Fund (the GE Retirement Fund): a Division B retirement question sheet, a retirement checklist, the Fund’s fiscal 2023 annual report, three DROP documents and the retirees page, read on October 7, 2026. Figures here are the Fund’s, or are labeled as computed examples from assumed inputs.
In its annual report the Fund says: “The Fund was first established on June 11, 1945 by a Special Act of the Florida State Legislature”. It also says “The Fund administers two defined benefit plans (Division A and Division B)”, and “The Fund is a single-employer defined benefit plan, with one participating employer, the City of Tampa”. The Tampa police and fire plans are outside this page.
The two divisions are split by hire date: “All general employees with a hire date on or after October 1, 1981 accrue benefits”. Earlier hires accrue benefits “under the plan that they self-elected, and this election cannot be changed”. On cost to the employee, “The Division A Plan is contributory for employees”, while “the Division B Plan is non-contributory for employees”. The member sheets read here are headed “Division B Plan Participants” and the DROP sheet “Division B Members”, so this page centers on Division B, with a short Division A comparison below. State tax questions are on Florida retirement taxes and does Florida tax pensions.
Vesting: the six-year threshold
The Fund’s member sheet sets the threshold for a lifetime pension: “A general employee is 100% vested in the City pension plan if he/she has at least six (6) years of continuous service”. The annual report puts it as “Members are vested after six years of continuous service”. Every option below starts with it. The documents read do not describe what, if anything, a Division B employee receives on leaving before six years (see the end of this page).
The five retirement options in Division B
The sheet says: “Five retirement options are available to employees who have at least six (6) years of continuous service”. The table restates each in the Fund’s terms.
| Option | Who qualifies | What it does to the pension |
|---|---|---|
| Longevity | Vested and at least 62 (normal retirement age) | Full benefit, no age reduction |
| Early | At least 55 and separates before 62 | Monthly benefit starts at a reduced rate: a 5% reduction for each year short of 62 |
| Deferred | Vested and separates before normal retirement age | Cannot begin before 55; the full pension is collected by waiting for the 62nd birthday, or the employee may choose to defer the full pension if separating between 55 and 62 |
| Disability | Totally and permanently disabled, approved by the Board of Trustees | Pension benefits are not reduced |
| DROP | Vested, as early as 55 | Pension accumulates in a DROP account while the employee keeps working, for up to seven years; the early retirement reduction applies |
The sheet defines longevity retirement this way: “An employee who is 100% vested and at least 62 years of age (considered normal retirement age under the retirement plan)”. Of early retirement it says “An Early Retirement is for an employee who is at least 55 years of age and separates from the city before age 62”, and “The pension benefit amount will be calculated with a 5% reduction for each year they have not attained the age of 62 years”. The annual report adds the window: “Early retirement is permitted at any time within the seven-year period prior to age 62 provided the member has completed six or more years of continuous service”.
Deferred retirement is for a vested employee who leaves before normal retirement age. The sheet says such an employee “is not eligible to begin withdrawing pension if younger than age 55”, and adds: “If the member is between the ages of 55 and 62 at the time of separation from the city, the employee can choose to defer their full pension”. The same paragraph also says the employee must wait until the 62nd birthday for the full pension, so confirm the 55 to 62 rule with the Fund.
What each option is worth, and a recomputed example
The annual report gives the Division B formula: “1.2% of the member’s average monthly salary, multiplied by the number of years of continuous service”. Normal retirement: “Members of Division B are eligible for normal retirement upon attaining age 62”. The report states the early cut per month as five-twelfths of one percent for each complete month before 62, which works out to the 5% a year on the member sheet.
A computed example from assumed figures, not Tampa figures: an assumed average monthly salary of $4,500 and an assumed 25 years of continuous service give 1.2% times $4,500 times 25, a computed $1,350 a month at 62. An assumed retirement 4 years short of 62 applies the sheet’s 5% per year, a 20% cut, so $1,350 becomes a computed $1,080 a month. Which salary counts as the average monthly salary is defined by the plan document, which was not among the documents read, so the Fund’s own estimate decides the real number.
For an estimate the sheet points to a MemberDirect account, the “Pension Benefits Calculator” on the City’s website, or the Fund’s staff.
The election that must come before leaving
The sheet warns: “Please note most pension benefit options must be chosen prior to separation from the city”. That is the closest thing in the documents to an irrevocable deadline. For longevity and early retirement the sequence is a notice of voluntary resignation entered in Oracle, which goes to the supervisor and Human Resources, then an appointment at the Fund. The checklist lists the forms signed there: a Retirement Application, a Direct Deposit Authorization, a “Tax Withholding Certificate” and a Beneficiary Designation form.
For DROP the order differs: “Entering DROP does not require resignation”. After signing there is a short window: “Once your DROP application paperwork is signed, you have seven (7) days to revoke your application”. On timing: “Your application must be received by the General Employees Retirement Fund two (2) weeks prior to your effective DROP entry date”.
Survivors: the 50% rule and what the documents do not offer
Division B has a built-in survivor rule rather than a menu of survivor options. The annual report says that a retiree who “is unmarried at the time he or she retires from the City of Tampa, monthly benefit payments from the Fund will stop upon death”. If married, the rule is that “monthly payments equal to 50% of his or her accrued pension benefit will continue after his or her death, provided they were still married to the same person and their spouse is still alive”. The checklist asks a married retiree to bring a marriage license and copies of the spouse’s documents, and a divorced one the divorce decree. The Beneficiary Designation form is separate: “This is to cover your last pension payment and any other sums due to you upon death”.
The documents read do not describe a joint-and-survivor election at a different percentage, a cash-out option for a spouse, or a reduction to the retiree’s own check to buy the spouse’s 50%. The general trade-off is covered on single-life versus joint-and-survivor pension and the mechanics on survivor benefit with a government pension.
A computed example from an assumed figure, not a Tampa figure: if an assumed accrued monthly pension is $1,000, the 50% continuance is 50% of $1,000, a computed $500 a month to a surviving spouse. The Fund’s wording adds two conditions: the couple must still be married to the same person and the spouse must be alive.
DROP: how it works
DROP is the nearest thing to a cash payout in the Division B documents. The DROP sheet says it lets an eligible employee “defer receipt of retirement benefits while continuing employment with the City of Tampa”, and “You may elect to participate in the program for up to seven (7) years and must terminate employment upon exiting the DROP”.
The lock-in is the central trade. At entry, “the amount of your continuous service and average monthly salary becomes frozen for purposes of determining your pension benefits”. The employee is treated as retired and “will not accrue additional retirement benefits, except for cost-of-living adjustments (COLA), if applicable”. In exchange, “The monthly retirement benefits you would have received if you had stopped working are credited monthly to your DROP account”. At the end: “Upon separation from City employment, you will receive your DROP account balance and will begin receiving your monthly retirement benefit”.
Eligibility mirrors early retirement: “Division B participants may enroll as early as 55 provided they are vested; however, benefits will be reduced by 5% for each year they fall short of the normal retirement age of 62 as defined by the plan”.
DROP money is invested. The employee gets two choices: “Option #1 is the Annual Net Rate of Return for the pension trust fund, high risk”, or “Option #2 is the low risk, variable rate Money Market Fund”. The balance at exit can differ from the credits alone, since “The annual statement will reflect any investment gains/losses and the administrative fee as of September 30th”.
A computed example from assumed figures, not Tampa figures: an assumed monthly benefit of $1,080, credited for an assumed 5 years, is $1,080 times 12 times 5, a computed $64,800 in credits, before any investment result, cost-of-living adjustment or administrative fee.
Exiting DROP: lump sum, rollover or both
Leaving DROP needs notice: “You must give thirty (30) days’ notice to your department of your intention to exit DROP”. On payout timing: “Your DROP account balance will be distributed no later than the last day of the next quarter following your DROP Exit date”. The Fund’s example: “if you exit the DROP on February 15th, your DROP account balance will be distributed on or before June 30th”.
The exit sheet lists three ways to take the balance. First: “You may receive your DROP account balance by rolling over the payment to either an IRA”, and the sheet goes on to name other plans that will accept the rollover. Second: “You may also elect to receive your DROP funds in a lump sum, less 20% federal withholding taxes”. Third: “You may elect a combination of the above; i.e. receive a lump sum and roll over the balance to a qualified plan”.
There is a paperwork gate: “No funds will be disbursed until your Election Form for Distribution of Accumulated DROP Benefits, along with written confirmation of account from your receiving financial institution, is received by the General Employees Retirement Fund”. If nothing is filed, “If this information is not provided, the State-mandated, default election will be made for you”.
A computed example from an assumed $64,800 DROP balance taken wholly as a lump sum, not a Tampa figure: 20% of $64,800 is a computed $12,960 withheld for federal tax, leaving a computed $51,840 in cash before any state withholding. The sheet says rolling the balance over is the alternative to a lump sum, and the final tax can differ from the withholding. See 20% withholding on a pension lump sum and pension lump sum versus monthly annuity break-even.
Dying or becoming disabled in DROP
The DROP sheet covers both. On death: “Your designated beneficiary or beneficiaries will receive your DROP account balance; if you are married, your spouse will receive a monthly continuance/survivor benefit equal to 50% of your accrued monthly pension”. On disability: “If you become disabled while in the DROP, you will exit DROP and receive your monthly retirement benefit along with your DROP account balance”. Outside DROP, disability retirement is for an employee who is “totally and permanently disabled physically and/or mentally”.
Division A, for comparison
Division A is the contributory plan for earlier hires. The annual report says that “General employees are required to pay contributions of 7% of their creditable compensation” and that “Members of Division A are eligible for normal retirement upon attaining age 55”. Anyone in Division A should rely on the Fund rather than this page.
| Feature | Division B | Division A |
|---|---|---|
| Hire date | On or after October 1, 1981 | Before October 1, 1981, self-elected |
| Employee contributions | None (non-contributory) | 7% of creditable compensation |
| Normal retirement age | 62 | 55 |
| Formula as reported | 1.2% of average monthly salary times years of continuous service | 2% of average monthly salary times years of continuous service up to 30, plus 0.5% of average monthly salary times years of continuous service greater than 15 (maximum 30 years) |
| Spouse continuance | 50% of accrued pension | 75% of accrued pension, 50% if the spouse remarries |
| Yearly cost-of-living | 1.2% each January | 2.2% each January |
Cost-of-living adjustments
For Division B the annual report says: “Retired members of the Division B plan receive a 1.2% automatic cost-of-living allowance in January of each year”. The DROP sheet says a participant “will not accrue additional retirement benefits, except for cost-of-living adjustments (COLA), if applicable”. The rule appears in the fiscal 2023 report, so confirm it is still current.
Other money and obligations around the pension
On payment: “Your pension benefit is paid monthly via direct deposit on the last business day of each month”. The 457(b) deferred compensation plans are separate from the Fund, and for distributions from them the sheet says “you must contact the plan administrator directly”. The checklist adds that “You may be able to rollover the leave pay to your 457(b) Deferred Compensation Plan”.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of the GE Retirement Fund’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The Fund’s DROP sheet describes the same 20% federal withholding on a lump sum, and a direct rollover to an IRA or employer plan as the alternative. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree or are unclear
The member sheet describes a deferred-retirement employee as someone who “is not eligible to begin withdrawing pension if younger than age 55”, yet also says “If the member is between the ages of 55 and 62 at the time of separation from the city, the employee can choose to defer their full pension”, so how a separation between 55 and 62 is treated needs the Fund’s confirmation. The benefit rules above also come partly from the fiscal 2023 annual report, while the DROP sheet is dated July 2026 and the member sheet February 2026. The DROP sheet says that if questions of interpretation arise, the Plan “must remain the final authority”.
What this page could not settle
- The pages read do not state what a Division B employee who leaves with fewer than six years of continuous service receives, because Division B is described as non-contributory and no refund rule was found.
- The pages read do not state a Division A refund or withdrawal rule for a member who leaves before vesting, only the death-benefit refunds quoted above.
- The pages read do not define average monthly salary, the number of years or pay used in it, or whether a maximum number of years counts in Division B.
- The pages read do not describe a joint-and-survivor election, an optional benefit form or a reduction to the retiree’s check to fund a larger spouse benefit.
- The pages read do not describe a service credit purchase.
- The pages read do not give the DROP administrative fee or the Annual Net Rate of Return history.
- The Retirement Plan itself (Chapter 23559, Special Act of 1945, as amended), the DROP election form and the Special Tax Notice were not among the documents read; the Fund says the Plan remains the final authority.
Common mistakes
- Resigning before choosing: the Fund says most pension benefit options must be chosen before separation from the City.
- Assuming DROP pays cash at entry; the balance is paid after exit, and the early retirement reduction applies to anyone entering before 62.
- Ignoring the paperwork gate on a DROP payout; no funds are disbursed until the election form and written confirmation from the receiving institution arrive, and otherwise a default election is made.
- Expecting a full check on a cash DROP distribution; a lump sum carries 20% federal withholding, and a rollover avoids it.
Related on this site: Florida retirement taxes, does Florida tax pensions, pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20% withholding on a pension lump sum, pension lump sum versus monthly annuity break-even, survivor benefit with a government pension and public pension retirement decisions by system.
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Answer againSources
- City of Tampa General Employees’ Retirement Fund, Thinking About Retiring? Division B Plan Participants (Rev. 02/2026): https://www.tampa.gov/sites/default/files/document/2026/thinking-about-retiring-02.2026-ada.pdf
- City of Tampa General Employees’ Retirement Fund, How Do I Retire from the City of Tampa?: https://www.tampa.gov/sites/default/files/document/2026/how-do-i-retire-from-cot-ada.pdf
- City of Tampa General Employees’ Retirement Fund, Annual Report for the fiscal year ended September 30, 2023: https://www.tampa.gov/sites/default/files/document/2024/fy23-ge-pension-annual-report.pdf
- City of Tampa General Employees’ Retirement Fund, DROP: What Is It? Division B Members (Rev. 07/2026): https://www.tampa.gov/sites/default/files/document/2026/drop-what-is-it_0.pdf
- City of Tampa General Employees’ Retirement Fund, How Do I Exit DROP and Retire?: https://www.tampa.gov/sites/default/files/document/2026/how-do-i-exit-drop-and-retire_1.pdf
- City of Tampa General Employees’ Retirement Fund, Timeline for Accumulated DROP Distribution: https://www.tampa.gov/sites/default/files/document/2026/timeline-for-accumulated-drop-payouts.pdf
- City of Tampa General Employees’ Retirement Fund, Information for Retirees/Pensioners (page updated 03/24/2026): https://www.tampa.gov/general-employee-retirement-fund/information-retireespensioners-0
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 7, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.