Making the Most of your DROP Account

DEFERRED RETIREMENT OPTION PLAN

(DROP)

DROP is an optional program. However, to be eligible to participate in DROP, the member must meet all of the following requirements:

1. Have at least 25 years of credible service exclusive of sick leave (members cannot convert sick leave into credible service to become DROP eligible).

2. Be at least 55 years of age.

A member may participate in DROP only one time.

Election to Participate in DROP

Election to participate in DROP must be in one-year increments for a minimum of three years, but not more than five years. Voluntary termination in the first three years of DROP participation will result in a penalty, but there is no penalty for involuntary termination such as dismissal, disabilty, involuntary transfer of his or her spouse, or death of the participant.

Applying for Participation in DROP 

A member is eligible to apply to enter DROP whenever he or she meets the requirements for participation. However, the member must have the application for DROP into the TRS at least 30 days, but not more than 90 days before the effective date of the participation in DROP. The effective date of participation must be the first day of a month. Contact the TRS to request the DROP Contract/Application or download the form from our website.

Entering DROP 

Maximum or Optional Retirement Allowance

At the beginning of the participant period, the member must choose between the maximum monthly benefit or one of the four options just like he or she would do if retiring. Once the member makes the decision, it is irrevocable. If the member does not make a choice, he or she will automatically receive the maximum. The monthly retirement allowance will be paid into the member's DROP account.

Converting Accrued Sick Leave

Accrued sick leave may not be converted to service credit for the purpose of establishing retirement eligibility nor used in calculating the monthly retirement allowance upon entering DROP.

DROP Benefit Estimates

Years in Drop         Maximum        Option I          Option II           Option III

1                           $32,163.60      $31,926.88     $27,229.78        $29,472.39

2                           $65,612.78      $65,129.86     $55,547.63        $60,122.63

3                           $100,405.73   $99,666.75       $85,003.67        $92,004.50

4                           $136,590.99   $135,585.70   $115,638.37         $125,162.15

5                           $174,217.08   $172,934.84   $147,492.21         $159,639.70