Friday, February 1, 2008

2007 DROP Interest Rate

The DROP interest rate for Fiscal Year 2006-2007 is 13.71 percent.

The Public Retirement Systems’ Actuarial Committee (PRSAC) determined the rate for eligible DROP accounts at its February 1, 2008, meeting. Self-directed DROP accounts are not eligible.

The rate of interest your account will earn is equal to the actuarial rate of return on LASERS investments for the prior fiscal year minus 0.5 percent. The rate of return for the fiscal year ended June 30, 2007, is calculated and established by the LASERS actuary after the end of each fiscal year.

Members’ DROP accounts will be credited with interest for each month of the fiscal year ended June 30, 2007, based on the balance in the account at the end of each month.

DROP interest rates are not guaranteed. Previous positive returns are neither indicators nor guarantees that DROP accounts will always earn these rates.

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