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.
- The interest rate for DROP participation accounts was adjusted to 1.8 percent; DROP Participation Accounts are the accounts that Active DROP members (those still working) contribute to during their participation period.
- The interest rate for DROP Annuities was adjusted to 3.6 percent. DROP Annuities are a payment option available to DROP participants after they retire from DROP. Under this payment option, retirees receive a monthly DROP payment (annuity) in addition to their monthly service retirement benefit (pension).