DROP Members FAQs
This information is designed to provide a quick reference tool for information about DROP and is intended to assist you in making the decision whether or not to participate in the program. It should be used as a supplemental document and not a replacement.
Additional FAQs For members entering DROP on or after February 1, 2019
Is the 112-hours of active duty status counted in calendar or work hours? Work hours. What time counts as “active duty status”? You can use…
DROP Participation
YOUR STATUS IN DROP Will I receive any service credit for retirement benefit calculation purposes for the time I am in DROP? No. Service…
Entering DROP
Why do I have to sign the various releases, waivers and covenants that are contained in the DROP election application? What happens if I refuse to…
Taxability Of Pensions
Part of your pension may not be taxed based on any after-tax contributions you made to the Plan. Pension income is subject to federal income tax….
Taxes and Social Security
Are there any income tax consequences to my entering DROP? Yes. The distribution of your DROP account is subject to federal and state tax…
Your DROP Account
How much interest will my DROP account earn? Interest is earned at an annual percentage rate of 5% and your account will be credited with…