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Interest Rate on Eligible DROP Accounts Approved

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Interest Rate on Eligible DROP Accounts Approved

Interest Rate on Eligible DROP Accounts Approved

The Public Retirement Systems’ Actuarial Committee (PRSAC) met on Thursday, March 7, 2013, and approved LSERS’ actuarial valuation for the fiscal year ending June 30, 2012.  This approval included the Deferred Retirement Option Plan (DROP) interest rate of 8.57% for eligible DROP or Initial Benefit Retirement Plan (IBRP) accounts.

LSERS will post 8.57% interest to the eligible DROP accounts later this month.  DROP quarterly statements that will be sent out in April will show the interest posting.

Which DROP accounts are eligible? 

If the answer to all three questions is YES, your DROP account will receive the 8.57% interest posting based on balances as of June 30, 2012. 1.  Were you eligible to participate in DROP or elect IBRP before January 1, 2004?
2.  Did you complete your DROP participation period (usually 36 months) before July 1, 2012?
3.  Did you have a balance in your DROP account after June 30, 2011?

Members who were eligible to participate in DROP on or after January 1, 2004, and who have completed their DROP participation period, earn monthly interest at the liquid asset money market rate.  For fiscal year ending June 30, 2012, the average monthly interest rate was .50%.

If you have any questions, contact our Accounting Department at 225.925.6484 or toll free at 1.800.256.3718.  You may also contact us via email at webmaster@lsers.net.