The first participants in OP&F�s Deferred Retirement Option Plan (DROP) are rapidly approaching their three�year anniversary in the program. If you were one of these early DROP enrollees, be aware that you must participate in the plan for at least three full years to realize the advantages of DROP.

If you are contemplating retirement soon, please take note of your DROP effective date. To realize the advantages of DROP you must not terminate employment prior to three years after this effective date. For example, if you entered DROP on Jan. 19, 2003, your termination date could be no earlier than Jan. 18, 2006 for you to receive the full benefit of your DROP accrual. If you terminate employment prior to three full years in DROP, you will forfeit all the accrued interest in your account.

Once you have terminated employment, you will be eligible to request a distribution of the funds accrued while you were a DROP participant. There are three different methods of distribution:

a single payment (one time lump sum that will zero out your account);
periodic payments (maximum of four per calendar year with a minimum of $1,000 per payment); and
monthly payments ($100 per month minimum)

Before requesting any type of disbursement, you will want to contact a personal tax or financial advisor to fully understand any tax implications to avoid an early withdrawal penalty of 10 percent if you make a withdrawal prior to age 55.

When you are ready to retire, contact OP&F Customer Service at 888�864�8363 to make an appointment for an interview or request a Service Retirement Packet.

Once OP&F receives your Service Retirement Application, information will be sent to you regarding your DROP accrual.

DROP is an optional benefit allowing eligible active members to delay retirement while accumulating a lump sum of money for when they retire. The minimum participation in the plan is three years, and the maximum eight years. For additional information about DROP, visit www.op�f.org, or contact OP&F Customer Service.