You're eligible for DROP participation.
You're eligible to participate as of your normal retirement date — the earliest date at which you are eligible for full, unreduced benefits based upon your age and service. In most cases, you reach your normal retirement date when you're vested and reach age 62, or when you complete 30 years of service, regardless of your age. Special Risk members must be vested and reach age 55 or have 25 years of service to participate in DROP.
Once you start participating in this program, your monthly DROP benefit is placed in your DROP account where it earns interest compounded monthly at an effective annual rate of 6.5%. These benefits are increased by a 3% cost-of-living adjustment each July 1.
When your DROP participation ends, you receive two retirement benefits - one from the FRS Pension Plan paid as a lifetime monthly benefit payment and one from DROP. The DROP benefit is paid as a lump sum, a rollover to another qualified plan, or a combination partial lump-sum payment and rollover. Effective July 1, 2005, you are eligible to roll your DROP lump sum into the FRS Investment Plan as one of your roll over options to keep your money growing in the FRS.
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You're not eligible for DROP participation as an Investment Plan member, but Pension Plan members are eligible to roll their DROP lump sum into the Investment Plan as one of the distribution methods under the Pension Plan.
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