The Deferred Retirement Option Plan (DROP) interest rate for calendar year 2015 will be 7.5%, effective
January 1, 2015. The rate was approved by the HMEPS Board of Trustees at the October 2014 Board meeting.
Under the Meet and Confer Agreement, the DROP interest rate for each calendar year is half (50%) of the HMEPS investment return for the prior fiscal year, with a maximum rate of 7.5% and a minimum rate of 2.5%. The HMEPS investment return for Fiscal Year 2014 was 16.39% so DROP participants in 2015 will receive 7.5% on their DROP accounts.
DROP is an optional retirement method for 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.