DROP Rate of Return
The rate of interest to be paid on eligible (non-Self Directed Plan) DROP accounts for the fiscal year that ended June 30, 2017 is 7.12 percent. This interest rate is based on a five-year actuarially smoothed return.
The Public Retirement Systems’ Actuarial Committee (PRSAC) approved the interest rate at its January 9, 2018 meeting. The rate for the fiscal year that ended June 30, 2018 will be approved early 2019.
Participants in the Self-Directed Plan do not receive this interest, but participate in earnings or losses based upon the choices they have made in their investment allocations through Empower Retirement.
For more information regarding DROP, please see the Deferred Retirement Option Plan chapter of the Member’s Guide to Retirement.