Important Information for Those Considering Rolling Over their DROP Account Balances

Assuming that you are a Louisiana resident, you probably shouldn't rollover your DROP account balance unless enjoy paying more in state income taxes than is necessary. Under R.S. 11:2228, all monies paid by MPERS are exempt from any Louisiana state tax. This includes DROP withdrawals.

If you are a Louisiana resident and rollover your MPERS DROP funds, your withdrawals will now be subject to Louisiana income tax (ranges from 2-6%).

If you are looking for more flexible investment options, MPERS has partnered with Empower Retirement to allow our DROP account owners to invest in the Vanguard Lifestrategy Funds effective February of 2020.