DROP Interest Rates
Once you complete DROP, your DROP account is eligible to earn interest. Members earn interest on their DROP accounts based upon when they were eligible to participate in DROP.
Members eligible for DROP participation before January 1, 2004:
These DROP accounts earn 0.5% less than TRSL’s actuarially realized rate of return. Interest rates vary from year to year. No minimum interest rate is guaranteed by TRSL. Interest is posted annually (based on daily compounding), usually in February. Quarterly DROP statements are available online in January, April, July, and October through Member Access.
Members eligible for DROP participation on or after January 1, 2004:
These DROP accounts earn interest at the liquid asset money market rate less a 0.25% administrative fee. This rate is similar to the rate paid by financial institutions on regular savings accounts. Interest is posted monthly. View your DROP account online in Member Access.
**DROP interest rate is subject to adoption by the Public Retirement System’s Actuarial Committee (PRSAC) each year.
**According to a 2002 state attorney general opinion, when the DROP interest rate is less than zero, then no interest will be posted to the DROP account.
Once you complete DROP, your DROP account is eligible to earn interest. Members earn interest on their DROP accounts based upon when they were eligible to participate in DROP.
Members eligible for DROP participation before January 1, 2004:
These DROP accounts earn 0.5% less than TRSL’s actuarially realized rate of return. Interest rates vary from year to year. No minimum interest rate is guaranteed by TRSL. Interest is posted annually (based on daily compounding), usually in February. Quarterly DROP statements are available online in January, April, July, and October through Member Access.
Members eligible for DROP participation on or after January 1, 2004:
These DROP accounts earn interest at the liquid asset money market rate less a 0.25% administrative fee. This rate is similar to the rate paid by financial institutions on regular savings accounts. Interest is posted monthly. View your DROP account online in Member Access.
| DROP Interest Rates (from 1993 to present) | ||
|---|---|---|
| Fiscal Year Ended June 30 |
DROP Interest Rate for members |
DROP Interest Rate for members |
| 2024 | 6.51% | 4.9703% |
| 2023 | 6.29% | 3.4197% |
| 2022 | 8.46% | 0.1000% |
| 2021 | 12.15% | 0.0000% |
| 2020 | 6.30% | 1.0797% |
| 2019 | 6.98% | 1.8940% |
| 2018 | 8.98% | 0.9538% |
| 2017 | 8.65% | 0.2214% |
| 2016 | 6.17% | 0.0595% |
| 2015 | 10.76% | 0.0000% |
| 2014 | 12.64% | 0.0000% |
| 2013 | 12.91% | 0.0000% |
| 2012 | 4.55% | 0.0001% |
| 2011 | 5.94% | 0.0047% |
| 2010 | 0.00%** | 0.01% |
| 2009 | 0.00%** | 1.32% |
| 2008 | 4.65% | 3.98% |
| 2007 | 14.70% | 4.88% |
| 2006 | 15.15% | 3.72% |
| 2005 | 9.37% | 1.48% |
| 2004 | 9.35% | 0.67% |
| 2003 | 0.00%** | -- |
| 2002 | 0.00%** | -- |
| 2001 | 0.00%** | -- |
| 2000 | 17.13% | -- |
| 1999 | 13.49% | -- |
| 1998 | 20.28% | -- |
| 1997 | 12.32% | -- |
| 1996 | 16.59% | -- |
| 1995 | 5.22% | -- |
| 1994 | 8.70% | -- |
| 1993 | 11.98% | -- |
**DROP interest rate is subject to adoption by the Public Retirement System’s Actuarial Committee (PRSAC) each year.
**According to a 2002 state attorney general opinion, when the DROP interest rate is less than zero, then no interest will be posted to the DROP account.