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DROP Interest Rates for 2020

Date: Nov 08, 2019 Categories: DROP, News Articles, Press Release

On November 8, SDCERS’ Board of Administration voted to approve new DROP account and DROP annuity interest rates, which will be effective January 1, 2020. The rates are calculated annually using publicly available indexes as of September 30 of each year.   Therefore, effective January 1, 2020, the DROP account interest rate (compounded quarterly) will be reduced to 2.5%, compared to the current rate of 2.7%. This interest rate will be applied to active DROP participants’ accounts. This rate is subject to change annually, which means a DROP participant’s account may receive a different interest rate every year during their participation period, depending on the Board’s actions.   Also beginning January 1, 2020, the DROP annuity interest rate will be increased to 3.1%, compared to the current rate of 3.0%. This interest rate will be applied to the funds remaining in a DROP retiree’s account if the retiree chooses to annuitize their DROP account, and it will be factored into the calculation of their monthly annuity. Unlike the DROP account interest rate, the DROP annuity rate will not change for an individual member – the rate that is in effect when a member exits DROP is the rate that will be applied to their annuity, regardless of whether or not the DROP annuity rate changes in future years. Therefore, if you are close to the end of your five-year DROP participation period, your decision to exit DROP before or after the New Year may be affected by the Board’s decision to increase or decrease the DROP annuity interest rate. Learn More...

DROP Interest Crediting Rate Change for 2019

Date: Nov 09, 2018 Categories: Board, DROP, News Articles

At its November 9, 2018 meeting, the SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2019. The interest rate for DROP Participation Accounts was increased to 2.7 percent. DROP Participation Accounts are the accounts that Active DROP members (those still working) contribute to during their five-year-maximum participation period. The current rate is 2.0 percent, through December 2018. The interest rate for a new DROP Annuity was increased to 3.0 percent. A DROP Annuity is a payment option available to DROP participants when they retire from DROP. Under this payment option, retirees receive a monthly DROP payment (annuity) in addition to their monthly retirement benefit (pension). The current rate is 2.8 percent for anyone who enters into a DROP Annuity through December 2018. Important: This has no effect on retirees who have already entered into a DROP Annuity. The DROP Annuity rate is permanent once the annuity disbursement begins.   Learn More...

DROP Interest Crediting Rate Change for 2018

Date: Nov 03, 2017 Categories: Board, DROP, News Articles

At its November 3, 2017 meeting, the SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2018. Learn More...

DROP Interest Crediting Rate Change for 2017

Date: Nov 04, 2016 Categories: Board, DROP

At its November 4, 2016 meeting, the SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2017. Learn More...

DROP Interest Crediting Rate Change for 2016

Date: Nov 13, 2015 Categories: Board, DROP, News Articles, Press Release

At its November 13, 2015 meeting, the SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2016. Learn More...

DROP Interest Crediting Rate Change for 2015

Date: Nov 14, 2014 Categories: DROP

At its November 14, 2014 meeting, the SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2015. Learn More...

New Policy Impacts Members Represented by Local 145

Date: May 14, 2014 Categories: DROP

At the May 2014 meeting, the Board of Administration approved Board Rule 6.50, which impacts DROP participants who are eligible to extend their DROP participation period beyond five years. The San Diego Municipal Code allows DROP participants who are represented by San Diego City Fire Fighters Local 145 the option of extending their DROP participation beyond five years using their unused annual leave. Learn More...

DROP Interest Crediting Rates for Active Participation Accounts and DROP Annuities

Date: Nov 21, 2012 Categories: DROP

DROP Interest Crediting Rates for Active Participation Accounts and DROP Annuities are set by the Board based on a weighted composite of rates selected by the Board. See Board Rules 6.10 and 6.40 under Forms & Publications. No later than December of each year, staff presents updated DROP Interest Crediting and DROP Annuity rates to the Board of Administration for its consideration. Learn More...

SDCERS Board Approves Changes to DROP Interest Crediting Rate

Date: Dec 16, 2011 Categories: Board, DROP

At its December 16, 2011 meeting, SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2012. Learn More...

Update on Affected PSC Contracts of Active Members "Trapped in DROP"

Date: Apr 12, 2011 Categories: DROP, Litigation, Purchase of Service (PSC)

The City Attorney’s office initially assured SDCERS it would not object to SDCERS’ request of the court for a clarification order exempting from correction affected PSC contracts of those Members in DROP before November 20, 2007. On Monday, April 11, however, the City Attorney’s office instead filed with the court an opposition to SDCERS’ request (see PDF of Opposition, at the bottom of this page). Learn More...

DROP Benefit Election Begins March 23, 2011

Date: Mar 18, 2011 Categories: DROP

Active City of San Diego employees have received benefit election materials in the mail to vote on proposed benefit changes to the City's Deferred Retirement Option Plan (DROP). Learn More...

DROP Interest Crediting Rate Change for 2011

Date: Dec 17, 2010 Categories: DROP

At its December 17, 2010 meeting, SDCERS' Board of Administration approved staff's recommendation to change the DROP (Deferred Retirement Option Plan) interest rates for the DROP Participation Accounts and DROP Annuities, effective January 1, 2011. Learn More...

Court Ruling on Effective Date of 2005 Benefit Changes

Date: Jul 22, 2010 Categories: 13th Check and Corbett, DROP, Health, Purchase of Service (PSC)

A recent decision by the San Diego Superior Court has ruled that benefit changes made by the City in 2005 – but which were not codified by ordinance into the Municipal Code until 2007 – have a retroactive effective date back to July 1, 2005. (A PDF of the ruling is available at the end of this article) Learn More...

DROP Interest Update

Date: Dec 11, 2009 Categories: DROP

On Thursday, December 17, SDCERS' Board of Administration approved staff's recommendation to lower the interest rate on DROP Participation Accounts from 3.54% to 2.9%, effective January 1, 2010. The DROP Annuity Rate will remain unchanged at 5%. Learn More...