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, 2022 is 6.55 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 December 15, 2022 meeting. The interest is posted to accounts in January 2023.
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.
For more information regarding DROP, please see the Deferred Retirement Option Plan chapter of the Member’s Guide to Retirement.