DROP interest rate now at 4.16%

The interest rate for those participating in the Deferred Retirement Option Plan is now 4.16 percent for the period from Oct. 1-Dec. 31, 2025. The rate has been above 4.0 percent since December of 2024. OP&F uses a variable interest rate for DROP and also re-employed retiree accounts.

The rate will be equal to the 10-year U.S. Treasury Note Business Day Series, as published by the United States Federal Reserve, with a cap of 5.0 percent and a minimum rate of 2.5 percent.

DROP is an optional benefit that allows eligible police officers and firefighters to accumulate a lump–sum of money for retirement.

Posted 10/1/2025