DROP Accounts and Withdrawals
Accounts
At the end of DROP participation, the DROP account is transferred to Empower Retirement. Requests for withdrawals and rollovers are then handled through Empower. Withdrawals and rollovers are only allowed upon termination of employment and retirement. Members may keep funds in the interest-bearing option or use self-directed investment choices.
Investment Risk
Self-directed DROP funds are invested by member at member’s risk and are subject to possibility of loss of value. By participating in self-directed investing, member accepts this risk and releases MERS from any obligation for said loss, as provided by R.S. 11:1763.
Tax Treatment
DROP withdrawals are subject to Federal Taxes but not subject to Louisiana State Income Tax. Currently if you rollover your DROP funds to another qualified plan, the funds become subject to both Federal and Louisiana State taxes when withdrawn. If you leave your funds with Empower Retirement you will retain your Louisiana State tax exemption.
Empower Contact Information
Empower Retirement National Client Services:
(800) 937-7604
Monday–Friday, 8 a.m.–5 p.m. Central
Louisiana Office:
9100 Bluebonnet Centre Boulevard, Suite 203
Baton Rouge, LA 70809
(225) 926-8082
Want to Learn More About DROP?
The DROP page explains eligibility, participation, what happens during DROP, and related forms.
Need help? Call MERS at 225-925-4810 or 1-800-820-1137.