MFPRSI. Municipal Fire & Police Retirement System of Iowa


If you would like to complete your DROP enrollment form, please select the appropriate DROP forms on the Forms page.

The Deferred Retirement Option Plan (DROP) is a distribution option available to the active members of the system. The program contains the following provisions.*


Members are eligible for DROP if he/she is an active member, at least 55 years of age, with 22 or more years of service.

Participation Period

A participation period of 3, 4, or 5 years are available.

Effective Date of Enrollment

Eligibility may effectively begin the first day of the month following the month for which participation is applied.

Benefit Determination

The monthly retirement benefit will be determined based on the period of service and final average pay through the quarter of membership service immediately preceding the participation date elected.  The DROP benefit is also called the "Chapter 411 Benefit," and it will not change following the commencement of the DROP participation date except for annual escalation after retirement.

DROP Account

An account is established for each member enrolled which will have a portion of the Chapter 411 Benefit credited to it for the duration of the selected participation period.  The Chapter 411 Benefit will be comprised of the following:

  1. A "minimum percentage" of 52% multiplied against the Chapter 411 Benefit, plus
  2. An "adjustment percentage," which will be determined based on the number of months between the elected DROP participation date and the initial eligibility date multiplied against the Chapter 411 Benefit.

For each month that participation in DROP is delayed, an additional 2% will be added as an adjustment percentage. For example, if a member waits 24 months to enroll in the DROP, the individual's overall DROP formula will be: [52% plus (2% x 24 months)] = 100%.

Member Contributions

The member's contributions to the retirement system will be credited to MFPRSI's assets during the member's DROP participation period.

City Contributions

The city's contributions will be credited to MFPRSI's assets during the member's DROP participation period.

Investment Return

Earnings and capital gains/losses on the investments will be credited to MFPRSI's assets and not to the individual members' accounts.

Benefit Escalation

The escalation provisions will apply from the actual date of retirement at the end of the DROP participation period. No escalation will occur during the DROP participation period.

Benefit Distributions

At the actual date of retirement, the member's DROP Account will be payable, upon member application, in the form of a lump sum distribution or a rollover to an eligible retirement plan. The regular Chapter 411 monthly benefits will also begin for the member.

If a member leaves the DROP prematurely there will be a 25% reduction in their DROP account and the reduction will be transferred to the System's general assets. If a member dies or suffers a disability under the Chapter 411 provisions, the member or the member's beneficiary will receive the entire amount from the member's DROP Account with no reduction.

Cost Determinations

The retirement system's actuary estimates that DROP will not add additional contribution costs to the plan. However, if contribution costs do occur due to DROP program experience that are not consistent with the actuarial assumptions or for any other reason associated with the DROP, the contribution costs will be assigned to the active membership of the plan for payment.

* Accrual of Drop Benefit occurs in accordance with the following administrative rule adopted by the System:

14.4 Accrual of DROP Benefit. An amount equal to seventy-five percent of the member's DROP benefit shall accrue to the benefit of the member for each month of participation in the plan. An amount equal to twenty-five percent of the member's accumulated DROP benefit shall accrue to the benefit of the member upon the occurrence of any of the following events: (1) termination of participation in the plan on the selected plan termination date; (2) termination of participation prior to the selected plan termination date as the result of entitlement to a disability benefit under either section 411.6(3) or section 411.6(5); or (3) death prior to the selected plan termination date.

This rule is intended to implement Iowa Code section 411.6C(2)(c).