For the convenience of OP&F members, this estimate is given to illustrate the potential benefits of the Deferred Retirement Option Plan (DROP). The following results are estimates only and will vary by member. The estimate provided below is not a guarantee of an actual accrual amount. For estimating purposes a one percent salary increase per year is included. The estimate does not include cost of living adjustments. Tax issues surrounding this benefit can be complicated and are not included with this estimate. Members should consult their personal tax or financial advisor concerning applicable federal, state or local tax rules that may impact this benefit.
Please refer to the OP&F Member's Guide to the Deferred Retirement Option Plan for information on eligibility, DROP election, cost of living provisions and participation periods which are based on member's specific date of hire and years of service.
Interest is credited to all DROP balances each month at a rate equal to the 10-year U.S. Treasury Note Business Day Series, as published by the United States Federal Reserve with a cap of 5.0 percent. This rate changes quarterly. However, for the purposes of the estimate, OP&F will use the current DROP interest rate for all years of the estimate. The current DROP interest rate is 3.88 %. Click here for all DROP interest rates.
For your estimated total DROP value, complete the information below and select Calculate.