NERS Deferred Retirement Option Program (DROP)


The Deferred Retirement Option Program (DROP), a unique NERS program, is available to all eligible NERS members, including sworn police and firefighter employees and general employees.  Participants are retired by NERS and accrue a NERS deferred benefit while continuing to work for the City as an active employee.

Know the Benefits

  • Retirement Benefit Calculation.  NERS will calculate your retirement allowance using your average final compensation (salary information), creditable service years, a retirement multiplier and unused sick leave as of your Normal Service Retirement (NSR)/DROP entrance date.  Any future salary increases and sick leave accrued during DROP are not included in your NSR benefit calculation.  DROP does not cause a reduction of your monthly retirement benefit.
  • DROP Account Balance.  While participating in the DROP, 70% of your NSR allowance will accrue for each month. Upon exiting the DROP, the DROP account balance is payable as a lump sum payment and your monthly retirement benefit will begin. 
  • Employee Benefits.  During your continued employment while in DROP, certain active employee benefits apply, including health and life insurance coverage.  Contact the Department of Human Resources should you have any questions about your active employee benefits.
  • NERS Mandatory Employee Contributions.  DROP participants are retirees and are exempt from NERS mandatory employee contributions (currently 5% of earnable compensation).
  • Death Benefit.  If you pass away while in DROP, NERS Death After Retirement benefits will apply and your DROP Account Balance will be paid to your estate.
  • Workplace Injury.  If you suffer a workplace injury as a DROP Participant, you may apply for accidental disability retirement.  However, you will forfeit your DROP participation and your DROP Account Balance should an accidental disability retirement be approved.

Know Before Applying

  • Eligibility.  You must be an active NERS member and eligible for a NERS NSR.  Your eligibility depends on when you were last hired with the City and your age and/or years of creditable service.
  • Filing Window.  Submit a completed NSR application to NERS between 30 and 90 days before your desired NSR effective date/DROP entrance date.  You will specify your DROP exit date at the time you complete your application for retirement (See Participation below).
  • Participation.  DROP participants are considered retirees for all retirement-related purposes.  You are able to participate in the DROP for up to five (5) years if you do not exceed any age restrictions (e.g., Sworn Public Safety Officers have a mandatory retirement age of 65).  Once you are a NERS retiree and simultaneously enter the DROP, participation is irrevocable and you cannot extend your DROP exit date, however, early exit from DROP is allowable. Members who entered DROP prior to January 1, 2023, may extend their DROP period not to exceed five (5) years from their DROP entrance date.

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