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What is the T-DROP? |
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T-DROP (Teacher Deferred Retirement Option Plan) is an optional program for ATRS members with 28+ or more years of service. If you chose to participate in T-DROP you would technically retire, regular retirement benefits, and then each month a reduced portion of the amount you would have received in retirement benefits would be deposited in your own tax-deferred T-DROP account. |
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How does my T-DROP account increase? |
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Your T-DROP account earns interest on the mean balance at the end of each fiscal year (July 1 through June 30). Beginning with the 2009-2010 fiscal year, ATRS will also pay interest on any T-Drop account after 10 years of participation. |
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Will I get a cost-of-living raise while I'm in T-DROP? |
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Yes. Your regular retirement benefit account will each be credited a 3% cost-of-living adjustment (COLA) for each full year of participation. |
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Can I change jobs while in T-DROP? |
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You can change employment as long as your new position is with an ATRS participating employer and there is no break in service. For example, if you teach now but you later accept a position in another school, state agency, college, or university, you could do so if the employer is covered by ATRS. |
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When can I get out of T-DROP? What do I need to do? |
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You may leave T-DROP under one of the following conditions: |
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- Voluntary termination. You voluntarily quit your ATRS-covered employment; or
- Involuntary termination. You are terminated by your employer, and are not immediately reemployed in an ATRS covered position; or
- Death. If you die while in T-DROP, benefits will be payable to your beneficiary(s).
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How are T-DROP funds paid? |
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You can receive a monthly benefit payment, which is added to your regular monthly retirement benefit, you may receive a lump sum payment, or rollover the funds into a qualified retirement plan. |
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Can I return to work after I terminate from T-DROP? |
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Yes. If you are under age 65, there will be a required termination period. |
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When does T-DROP start and when do I apply? |
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The T-DROP begins on July 1 of each year. To become effective on July 1, you the must complete and return no later than May 31, a T-DROP application form. Your employer must complete the bottom section and should retain a copy for future reference. |
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IMPORTANT: T-DROP is intended to operate in accordance with Section 415 and other applicable sections of the United States Internal Revenue Code. Any provisions of T-DROP found to be in conflict with any applicable provisions of the IRS Code will be declared invalid. |
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If you have any questions, please contact us at (501) 682-1517, toll free at 1-800-666-2877, or email us at
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