Tuesday, February 22, 2011

DROP Interest Rate

The rate of interest to be paid on eligible (non-Self Directed Plan) DROP accounts for fiscal year that ended June 30, 2010 is 1.71 percent.

The Public Retirement Systems’ Actuarial Committee (PRSAC) approved the interest rate at its February 22, 2011 meeting.

To be eligible for interest, a DROP participant must have completed their accumulation period (usually 36 months after starting DROP) sometime during the 2009-2010 fiscal year.

Participants in the Self Directed DROP plan do not receive this interest, but participate in earnings or losses based upon the choices they have made in their investment allocations through Great West.

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