What is the Deferred Retirement Option Program (DROP) and what are the criteria to participate in the plan?
DROP is an option available to employees enrolled in the FRS defined pension plan. It allows employees who meet normal retirement (age 62 and vested, or 30 years of service at any age; or age 55 and vested or 25 years of Special Risk service for law enforcement officers) to retire and begin accumulating the monthly retirement benefits without terminating employment for up to 60 months. The monthly retirement pension remains in a holding account earning 6.5% interest compounded annually and 3% annual cost of living increases, while the employee continues to work (but does not earn additional service credit for retirement). To be eligible for DROP, employees must be vested (six years of credible service) and eligible for normal retirement (based on years of service or age as required by their retirement class) as a member of the FRS Pension Plan.
