How the Arizona PSPRS DROP Program Works

The Deferred Retirement Option Plan, or DROP, is a feature of the Arizona Public Safety Personnel Retirement System (PSPRS) available to eligible members who have reached normal retirement eligibility. This guide explains, in plain language, how the program is structured. It is educational only and is not individualized advice.

What DROP Is

When a member enters DROP, they are treated as retired for pension-calculation purposes while continuing to work. Their monthly pension benefit is calculated and then deposited into a separate DROP account instead of being paid directly to the member.

How the Account Accumulates

For the duration of the DROP participation period, the calculated monthly pension amount accumulates in the member’s DROP account. Contributions and the treatment of interest are defined by statute and by the plan’s current provisions.

• The monthly pension amount is fixed at the calculation date.
• Participation is time-limited under the plan’s rules.
• The account is distributed when the member ultimately separates from service.

Key Dates That Shape DROP

Two dates matter most: the date a member becomes eligible to enter DROP, and the date DROP participation must end. Because the participation window is limited, understanding these dates is central to understanding the program.

For questions about how these general rules apply to an individual situation, members should speak with a qualified advisor and consult the official PSPRS plan documents.