m_header_1150x160-trans-divider




MONTANA MUNICIPAL POLICE OFFICERS’ RETIREMENT SYSTEM

Deferred Retirement Option Plan (DROP)

 

Active MPORS member elects to participate in DROP-

  • DROP account allows a member to begin accumulating a retirement benefit without terminating employment. 
  • A member must be at 20 years membership service to participate.
  • Member elects timeframe in DROP: 1 month - 60 months.
  • Monthly benefit calculation: Service Credit x Final Average Salary x 2.5%
  • DROP account is created, separate from regular MPORS account. 
  • Member/Employer/State continue regular contributions to the MPORS pension fund.
  • Member is not credited any service during DROP participation.
  • Member receives 3% GABA annual adjustments after initial 12 month (Jan-Dec) period while in DROP. 
  • DROP account will be credited interest at the end of every fiscal year based on the actuarially assumed rate of return which right now is 7.65%

POST DROP Employment-

  • When DROP period ends, a member may continue working or retire, see next section.
  • Earn additional retirement benefit based on the calculation:  Service Credit x Final Average Salary x 2.5%.
  • Members are considered newly hired and immediately vested in MPORS.
  • DROP account will earn an interest rate equal to the actuarial assumed rate of return, which is fixed at the end of the year.
  • DROP benefit will not be recalculated and GABA ends during POST DROP employment.  

Member elects to retire- 

  • Members must rollover DROP account within 60 days of termination to another eligible retirement plan as allowed by IRS.
  • If a member does not designate a rollover within 60 days of termination date the DROP account balance will be paid to the member in a lump sum. (Federal and state taxes apply.)
  • Pre-DROP monthly benefits are initiated for the member’s lifetime.

For more information regarding the MPORS DROP, contact MPERA.