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A Breakdown of BackDROP

Jun 21, 2021, 16:15 PM by MOSERS
 I have never understood what "back drop" means. I do not think it was ever explained to me at the time of retirement.

In order to be eligible for the BackDROP, a member must work at least 2 years past their first normal retirement date. The "DROP" in BackDROP stands for Deferred Retirement Option Provision. With BackDROP, eligible members can get a one-time lump-sum payment in addition to their monthly pension payments from MOSERS. Members can make the choice to take BackDROP on their Retirement Election form.

The BackDROP period is the period of time between a member’s BackDROP date (the day their BackDROP period begins) and their actual retirement date. The maximum BackDROP period is five years. The lump-sum payment is equal to 90% of the pension benefits (based on the Life Income Annuity option) that the member would have received during the BackDROP period had they been retired. Choosing BackDROP will, most likely, reduce the amount of their monthly benefit. 

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