At the time you enter the DROP, a "DROP frozen benefit" will be calculated. This DROP frozen benefit is equal to your monthly retirement benefit (calculated under the provisions of your pension fund). You must retire on the DROP retirement date you declared when you entered the DROP in order to be able to elect this benefit option.
When you retire on your DROP retirement date, your DROP benefit is equal to the amount of your DROP frozen benefit (i.e., your monthly retirement benefit as determined at the time you entered the DROP) multiplied by the number of months you participated in the DROP. There are no interest or earnings applied to the DROP benefit.
You may receive this DROP benefit either in a lump sum or in three equal annual payments. Interest does not accrue on the unpaid portion of the annual installments.
In addition to the DROP benefit (taken in a lump sum or in three equal annual payments) you are also entitled to a monthly retirement benefit. This monthly retirement benefit is equal to the monthly DROP frozen benefit determined at the time you enter the DROP.
You can use this DROP Benefit Estimation Worksheet to get an estimate of your DROP benefit.