DROP — Deferred Retirement Option Plan

What is DROP?

The Deferred Retirement Option Plan, known as DROP, is an optional program administered by MERS in which you can build a savings nest egg on a tax-deferred basis. Your DROP account is separate from your regular monthly MERS retirement benefit.

MERS calculates what your regular, lifetime monthly retirement benefit when you apply to participate in DROP. The benefit amount is “frozen” and will never change. This same amount is deposited into your DROP account each month during your participation in the program. The amount deposited in your DROP account is based on the formula set in state law and your option selection. The selection of a retirement option is irrevocable, no matter how your situation may change in the future.

What Happens to Your DROP Account?

At the end of your DROP participation period, your DROP account is transferred to Empower Retirement. Empower administers the account and provides the available investment and distribution options.