Deferred Retirement Option Plan: the Maximum (or chosen option) monthly benefit is frozen and deposited to a DROP account for up to 36 months while the member keeps working; no member or employer contributions during DROP. The 36 months start when the member first becomes eligible; there is a 60-day grace period to apply. Applying after the grace period shortens DROP. Irrevocable. Members who retire under the 20-years-any-age rule, disability retirees and ORP participants cannot enter DROP. Entering with a 2.0% factor locks 2.0% forever. Interest starts only after DROP ends: 0.5% below TRSL's actuarially realized return (eligible before Jan. 1, 2004) or the liquid-asset money market rate less 0.25% (eligible on/after Jan. 1, 2004); no minimum. After DROP, working again earns a supplemental benefit; a new FAC is used if the member works 3 (pre-2011) or 5 (2011+) years after DROP. DROP Handbook pp. 3-8; R.S. 11:786; R.S. 11:787
Who can enter DROP
| Group | Rule | Factor |
|---|---|---|
| Joined TRSL before July 1, 1999; Joined TRSL July 1, 1999 - December 31, 2010 | 30 years at any age, or age 55 with 25 years | 2.5% |
| Joined TRSL before July 1, 1999; Joined TRSL July 1, 1999 - December 31, 2010 | age 60 with 10 years | 2% |
| First joined a Louisiana state system January 1, 2011 - June 30, 2015 | age 60 with 5 years | 2.5% |
| First joined a Louisiana state system on or after July 1, 2015; Plan B, first joined a state system on or after July 1, 2015 | age 62 with 5 years | 2.5% Regular Plan, 2.0% Plan B |
| Plan B, first joined a state system before July 1, 2015 | age 55 with 30 years, or age 60 with 10 years | 2% |
DROP Handbook p. 7, Membership prior to January 1, 2011 (Regular Plan); R.S. 11:786(A)(1); DROP Handbook p. 7; p. 5, Skipping or delaying DROP participation; R.S. 11:786(A)(1) ('calculated using only a two percent benefit formula'); DROP Handbook p. 8; R.S. 11:786(A)(2); DROP Handbook p. 8 (Regular 2.5%, Plan B 2.0%); R.S. 11:786(A)(4); DROP Handbook pp. 7-8; R.S. 11:786(A)(3)
State law also lets members who joined before 2011 enter DROP at 65 with 20 years. TRSL's DROP Handbook leaves that out.
We follow the DROP Handbook and don't use the age 65 rule.
R.S. 11:786(A)(1); DROP Handbook p. 7The clock starts when you first qualify
Your 36 months run from the first day you meet a DROP rule. Apply within 60 days to get all of them. If you wait, you lose the months in between.
What goes into the account
Your monthly benefit is fixed on the day you enter, under the option you chose, and paid into the account each month. Neither you nor your employer pays contributions while you're in DROP. Member Handbook p. 3; R.S. 11:62(11); DROP Handbook p. 3; R.S. 11:787(A)(1)
Example (our numbers): a $3,000 monthly benefit for 36 months puts $108,000 into the account before interest.
Interest, after DROP ends
No interest is paid during DROP. After it ends, the rate depends on whether you became DROP-eligible before Jan. 1, 2004 (see the DROP description above), with no minimum. The rates TRSL has credited:
| Year ended June 30 | Eligible before 2004 | Eligible 2004 or later |
|---|---|---|
| 2025 | 8.17% | 4.3243% |
| 2024 | 6.51% | 4.9703% |
| 2023 | 6.29% | 3.4197% |
| 2022 | 8.46% | 0.1% |
| 2021 | 12.15% | 0% |
| 2020 | 6.3% | 1.0797% |
| 2019 | 6.98% | 1.894% |
| 2018 | 8.98% | 0.9538% |
| 2017 | 8.65% | 0.2214% |
DROP Handbook pp. 14-15; Guide for Retirees p. 11 (adds FY2017)
After DROP
You can leave and draw your account, or keep working. Work after DROP earns a supplemental benefit; if you work 3 years (first joined before 2011) or 5 years (2011 or later) after DROP, TRSL uses a new FAC for it. DROP Handbook pp. 16-17; R.S. 11:789(D)
Lump sum or systematic withdrawals after DROP and employment end; must be paid out within life expectancy; RMD rules at 73. DROP Handbook pp. 18-20; R.S. 11:789(A)
DROP participants get no PBI during DROP or while employed after DROP; eligible again one year after terminating employment. DROP Handbook p. 21, Permanent benefit increase (PBI); R.S. 11:787(D)
DROP withdrawals TRSL pays straight to you aren't taxed by Louisiana. Taxes →
DROP or the lump sum?
If you never use DROP, you can instead take the Initial Lump-Sum Benefit when you retire: up to 36 months of your benefit in one sum, for a smaller check for life. How the ILSB works →
From the sources
- DROP lets you keep working while your benefit, frozen at the date you enter, is deposited into a DROP account for up to 36 months. Neither you nor your employer contribute during DROP. The 36 months start when you first become eligible, and you have a 60-day grace period to apply.DROP Handbook pp. 3, 5; R.S. 11:786(B)
- DROP eligibility: joined before 2011, 30 years at any age or 55 with 25 years (2.5%), or 60 with 10 years (2.0%, which then applies forever). Joined 2011 to June 2015: 60 with 5 years. Joined July 2015 or later: 62 with 5 years.DROP Handbook pp. 7-8; R.S. 11:786(A)
- DROP accounts earn interest only after DROP ends, with no minimum. For members eligible on or after Jan. 1, 2004 the rate was 4.3243% for the year ended June 30, 2025.DROP Handbook pp. 14-15
- Instead of DROP you can take the Initial Lump-Sum Benefit (ILSB): up to 36 months of your Maximum benefit as a lump sum, with a smaller lifetime benefit. Example: at age 50, each $1,000 lowers the monthly benefit by $6.59, so $10,000 costs $65.90 a month for life.ILSB brochure PDF pp. 3, 5
Questions
When can I enter TRSL's DROP?
When you first meet a DROP rule for your group (see the table). The DROP period starts counting from that date whether you enter or not.
How long can I stay in DROP?
Up to 36 months. You have 60 days from the date you first qualify to apply and still get all 36; applying later shortens it.
Does my DROP account earn interest?
Not while you're in DROP. Interest starts after DROP ends, at a rate that depends on when you became DROP-eligible, with no minimum.
Can I use DROP if I retire with 20 years at any age?
No. Members who retire under the 20-years-at-any-age rule, disability retirees and ORP participants can't enter DROP.
Source: TRSL Member Handbook: Regular Plan & Plan B, Last revised April 2026, p. 3. Also: DROP Handbook pp. 3, 3-8, 5, 7, 7-8, 8, 14-15, 16-17, 18-20, 21; Guide for Retirees p. 11; ILSB brochure PDF pp. 3, 5; La. R.S. 11:62, 11:786, 11:787, 11:789. Last reviewed .