PSPRS is beginning the process of rolling back Tier 1b DROP contribution requirements and recalculating applicable interest rates. The Tier 1b membership consists of PSPRS members who did not have 20 years of credited service prior to Jan. 1, 2012.
This process will result in refunds and interest recalculations (increases) for active Tier 1b DROP members and retirees. Future DROP members will not make member contributions into their DROP accounts.
Again, this process does not impact Tier 2 or 3 members, including non-Social Security Tier 2 members whose benefits were increased in 2016 to include access to the 401a Defined Contribution plan overseen by PSPRS.
Roughly 1,300 members and retirees will be affected by the rolling back of Tier 1b contribution refunds and interest recalculations. PSPRS hopes to conclude this complex process that requires working with more than 100 employers by June 30, 2019.
Your patience is appreciated, as PSPRS will provide its members, employers and local board members all meaningful future updates in a timely manner, including those pertaining to the related and pending rollback of changes to service purchase laws.