Drop Rollovers

DROP accounts earn interest compounded monthly at an effective annual rate of 6.5% (if your DROP participation began prior to July 1, 2011) or 4% (if your DROP participation began on or after July 1, 2011).

Your retirement benefits paid into DROP are also increased by the 3% annual cost-of-living adjustment (COLA) each July 1 (adjustment only applicable for FRS service earned prior to July 1, 2011). (If you are in DROP for less than a full year on July 1, your first COLA will be a prorated percentage based upon the number of months you were in DROP before July 1st.)

When you terminate employment, the proceeds of your DROP account will be distributed to you in one of three ways:

1.       By a lump-sum payment.

2.       By a direct rollover; or

3.       By a combined partial lump sum payment and rollover.