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:

• - By a lump-sum payment.

• - By a direct rollover; or

• - By a combined partial lump sum payment and rollover.

If you have a DROP account, please schedule a time to meet so that you can make sure those funds are in the correct account to maximize your hard earnings and protect them as you start your new chapter of retirement to ensure you have what you need through retirement and beyond. Or if you have an account that you are thinking of placing those funds let schedule a meeting to review it to make sure there are not fees that will take away from your potential growth.