Must read: 10 facts about DROP
- Before you do anything, remember that despite what your friends say, the Deferred Retirement Option Plan (DROP) may NOT be right for you. Contact TRSL and consider your own situation carefully before you make a decision to participate.
- DROP lets you build a savings nest egg—apart from your monthly TRSL retirement benefit—that you’ll have access to once you terminate employment.
- A window of opportunity opens when you are first eligible for DROP participation. If you do not enter DROP at that time, you begin to lose participation time. (See DROP eligibility criteria below.)
- You can participate in DROP for up to three years.
- You and your employer don’t make contributions to TRSL while you participate in DROP, so you may see a bump in your paycheck.
- Once you apply for DROP, your future monthly TRSL retirement benefit is calculated and locked in. This benefit is also the amount that will be deposited each month into your DROP account during your DROP participation period.
- If you get a pay raise during DROP participation, it cannot be used to calculate a higher retirement benefit. Remember, your monthly TRSL retirement benefit has been locked in.
- Upon completion of DROP, your account is eligible to start earning interest.
- Once you’ve finished DROP, you can terminate employment and begin withdrawing from your DROP account. You have a choice of a total account withdrawal, partial withdrawal, or annual or monthly withdrawals. (You’ll also start receiving your monthly TRSL retirement benefit.)
- If you continue working after the DROP participation period is over, you’ll earn a supplemental retirement benefit. (Pay raises received after DROP participation ends may be used to calculate your supplemental retirement benefit if you work at least three more years.)
DROP eligibility
There are different sets of eligibility criteria for participating in DROP. Whichever eligibility criterion below you first reach is when your DROP window begins. Your window cannot be extended. - Any age with 30 years of service/eligibility credit
- At least 55 with 25 years of service/eligibility credit
- At least 60 with 10 years of service/eligibility credit
NOTE: There are different criteria for Plan B members.
