Deferred Retirement Option Plan (DROP)
Deferred Retirement Option Plan (DROP) is a supplemental benefit program
available to Michigan State Police Retirement System members who are eligible to retire,
but agree to defer their retirement and continue working and receiving active
Members who enroll in the DROP choose the length of time they wish to extend
their employment and defer their pension benefits, up to a maximum of six years.
ORS calculates a DROP amount based on the member's pension value and credits
this amount each month during the DROP period to an interest-bearing account in
the member's name.
When the member terminates employment, the DROP participation period ends and
normal monthly pension payments begin. At this point, the accumulated DROP funds
become available to the former DROP participant.