At its February 28, 2024 meeting, the Board of Trustees of the Police Retirement System, upon certification by its actuary, Cheiron, accepted a report that the System investment portfolio return for the Fiscal year ending September 30, 2023 was up 10.3 percent.

In keeping with the System’s Plan Document, this means the DROP interest rate as of October 1, 2023 is 10.3 percent.  This means that anyone with a DROP account balance existing on October 1, 2023 will receive this 10.3 percent rate of return at the earlier of October 1, 2023 or distribution.  For any member who was in DROP as of October 1, 2023 who takes distribution, i.e., payout, during the course of the current Fiscal Year (which ends September 30, 2024), the 10.3 percent rate of return will be applied in proportion to the portion of the year preceding the date of distribution.

How does this DROP interest rate compare with DROP interest rates for previous years?  See the attached link to see a history of DROP interest rates for System members.

DROP Interest Rates 1996-Present