The Deferred Retirement Option Plan (DROP) interest rate for calendar year 2022 will be 6.2%, effective January 1, 2022.
The DROP interest rate as of January 1 of each year is equal to half of HMEPS’ net five-year investment return, but not less than 2.5% nor more than 7.5%. The HMEPS net five-year investment return is 12.39%. Half of 12.39% is 6.2%. Therefore, DROP participants in 2022 will receive 6.2% interest on their DROP accounts.
DROP is an optional retirement method for Group A and Group B members who have reached their normal retirement eligibility (age and years of credited service) but do not want to retire. It is an alternative method of accumulating and receiving a pension benefit from HMEPS. To speak with a benefit counselor to learn more about DROP, please call the HMEPS office at 713-595-0100.