| A: |
Contact the Pension System office for a packet that explains DROP. The explanation, application, beneficiary form, authorization, and tax information will be included. This information also is available online in the Forms section.
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| Q: |
Is there a minimum length of time to participate? |
| A: |
You must participate for at least one month.
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| Q: |
After enrollment, when will deferrals begin? |
| A: |
Deferrals will begin on the first day of the month following Board approval of the application.
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| Q: |
If I want to join later and not now, can I?
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| A: |
Yes. A Member can only join once, but the election may take place any time before age 70.
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| Q: |
Is there a maximum length of time that I can defer my benefit? |
| A: |
Yes. The deferral can continue until age 70 1/2. At that time, as required by the Internal Revenue Code, you must commence distribution in accordance with IRS rules.
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| Q: |
Is the interest rate guaranteed? |
| A: |
No. It is set for the year 2004 at 9.00%. Interest will range from 8%-10% and is equal to the System’s 10-year average market rate of return, as determined by the System’s actuary. The interest rate will vary no more that 0.25% from one year to the next.
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| Q: |
If I am in the Supplemental Plan, will participation in DROP affect my Supplemental Plan benefit? |
| A: |
Pension benefits from the Supplemental Plan must also be deferred if your regular pension benefit is deferred.
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| Q: |
How can I get more information? |
| A: |
For more information about DROP, see the DROP section of this Web site. You also may call the Pension office and either speak with a counselor, or arrange to come in for an appointment.
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