Deadline Reminder

Date: Jun 02, 2009


For members planning to service retire or retire from DROP by June 30, 2009:  SDCERS closes at 5 pm on June 30.

Applications must be received & date-stamped prior to 5 pm on June 30 & your last day on active payroll (including leave time) must be June 29 or prior.

SDCERS is located at 401 West A Street, Suite 400, and the phone number for information is 619.525.3600.

New interest rates for DROP accounts go into effect July 1, 2009. Members who want to retire prior to June 30, 2009 should make an appointment immediately. Contact the SDCERS Call Center at 619.525.3600.

DROP information sessions held in April

SDCERS held three comprehensive DROP information sessions in April. See the information presented at these sessions by clicking the documents below:

  DROP Information Session Presentation

 Frequently Asked Questions About DROP


At its February 20, 2009 meeting, SDCERS' Board of Administration voted to lower the interest rates on DROP accounts. The current interest rate applied to DROP accounts is 7.75%; effective July 1, 2009, active DROP participation accounts will be credited with an interest rate of 3.54%, while DROP annuity options will be calculated at 5%.

Calculating Interest Over 20 Years 

DROP payments are based on a monthly amortization schedule similar to typical loan payments. If you would like to get an idea of what your DROP payout would be for either 20 years or for your remaining life expectancy at various interest amounts, you may use the online calculator provided below.  To use the online calculator:

  • Enter the value of your DROP account in the "Loan Amount" box
  • Enter the interest crediting rate in the "Interest rate" box
  • Enter 20 years or your remaining life expectancy in the "Loan term" box.
    (click here for Single Life Expectancy Table)

Amortization Schedule Calculator

Note:  SDCERS has no affiliation with and does not endorse this site; we offer this information to you for comparison purposes only. There are also other web sites that provide amortization schedules and calculators.

Related Materials

Below are links to related documents providing information of the change in the DROP interest crediting rate.

   SDCERS' Press Release on interest rate change (2-20-09)

    Actuary's Discussion of DROP Interest Rates (2-20-09 presentation)

    Actuary's Discussion of Issues Related to DROP Interest Rates (1-23-09 presentation)

    Fiduciary Analysis of DROP Program Interest Rate Determination (1-23-09 presentation)

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