The Deferred Retirement Option Plan (DROP) is a popular feature of some FPPA retirement plans. DROP allows Members to build up a cash account in their final years before retirement. DROP is popular with Members who want to do things like start a business, settle outstanding debts, or pay off their home; basically any situation where the freedom of a lump sum cash account is helpful.

How DROP Works

When a Member enters DROP, they'll techically retire while continuing to work. They'll complete the retirement application, and their monthly lifetime benefit amount will be finalized.

Then, while working up to five more years, they receive their normal paycheck and benefits. But, because they're technically retired, FPPA deposits their monthly pension checks and Member payroll contributions into an investment account, building up a cash balance they can use once they stop working.

Important: Once Members enter DROP, they won't earn any more service credit to increase their monthly pension benefit.

DROP is covered in greater detail in each of these component brochures: