DROP (Deferred Retirement Option Plan) Information

OP&F uses a variable interest rate for DROP and re-employed retiree accounts

The interest rate for the period of April 01, 2024 - June 30, 2024 is 4.20%.

As of April 2, 2012, the rate will be 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. In February 2012, the OP&F Board of Trustees unanimously voted to change the interest rate associated with DROP and re-employed retiree accounts. This change was made in an effort to help OP&F reach a mandated 30-year funding level required by the State of Ohio for public pension funds and also to help keep DROP cost-neutral. In October 2019, a minimum rate of 2.5 percent was approved by the OP&F Board of Trustees.

The Deferred Retirement Option Plan (DROP) is an optional benefit that allows eligible police officers and firefighters to accumulate a lump–sum of money for retirement. The Ohio Police & Fire Pension Fund (OP&F) is proud to offer this benefit to its membership, which has been the most requested addition to OP&F's benefit offerings in many years.

Based on tremendous member request, OP&F put in place a beneficial program without additional cost to members, their employers or OP&F. Senate Bill 134 was signed into law in 2002, which enabled OP&F to begin offering DROP in 2003.

Enrolling in DROP is a voluntary decision that members should make after careful consideration of their own individual situation. OP&F strongly encourages all members to seek financial, legal and tax advice from professional counselors before entering DROP.