What is DROP?
DROP is an optional program administered by MERS in which you can build a savings nest egg on a tax-deferred basis. Your DROP account is separate from your regular monthly MERS retirement benefit. To be eligible for DROP, a member must be eligible for normal retirement.
MERS calculates what your regular, lifetime monthly retirement benefit will be once you apply to participate in DROP. The benefit amount is “frozen” and will never change. Also, this same amount will be deposited into your DROP account each month during your participation in the program.
The amount deposited in your DROP account is based on the formula set in state law and your option selection. The selection of a retirement option is irrevocable, no matter how your situation may change in the future.
While you participate in DROP you will continue to work and draw a salary but you will not make employee contributions to MERS at this time.
You can participate in DROP for up to 36 months. Once your participation in DROP is complete, you can either terminate employment & retire or continue to work.
What happens to your DROP account once your DROP period ends?
Whether you choose to remain in active service or retire and begin receiving your monthly retirement benefits, your DROP account will automatically be transferred to Empower Retirement at the end of your DROP period.
MERS has partnered with Empower Retirement to be able to provide you with more investment options to assist our members in planning for your future.
At no cost to our members, Empower has local retirement plan advisors who are available to meet with you one-on-one, virtually via phone, and/or video conference. Empower’s team can help you stay on course to and through retirement by providing you with the personalized support and education you need based on your financial circumstances. During a meeting with their representative, you can discuss topics, including plan features and benefits, your savings goals, budgeting, investing, retirement readiness, withdrawal strategy, and more.
Empower Contact Information:
Empower Retirement National Client Services: (800) 937-7604
Service hours: Monday – Friday, 8 a.m. to 5 p.m. Central time
State of Louisiana Public Employees Deferred Compensation Plan/Empower:
9100 Bluebonnet Centre Boulevard, Suite 203
Baton Rouge, LA 70809
(225) 926-8082
Website: https://louisianadcp.empower-retirement.com/
Email Address: LouisianaDCP [at] empower.com (LouisianaDCP[at]empower[dot]com)
Service hours: Monday – Friday: 8 a.m. to 5 p.m. Central time