(a) Account established. The Personnel Officer shall establish an account in the pension fund for recording the actions required by this section and is not required to establish an individual account for each DROP participant.
(b) Retirement benefits. The Personnel Officer shall determine the annual retirement benefit under § 5-4-203, § 5-5-203, or § 5-6-203 to which a DROP participant is entitled as of the first day of the DROP participation period. The retirement benefit includes adjustments for any changes under Title 7 applicable to the retirement benefit and excludes service and salary during the DROP participation period for purposes of calculating the entitlement to and amount of the retirement benefit.
(c) Account balance. The account balance credited to a DROP participant includes:
(1) the amount of the retirement benefit determined under subsection (b); and
(2) interest compounded on the account balance as of the first day of each month, at an interest rate of .34745%, which provides an effective annual yield of 4.25%.
(d) Limitations on interest. No interest will be earned or credited after the expiration of any DROP participation period.
(e) Statement of account balance. At least once a year, the Personnel Officer shall provide to a DROP participant a statement of the account balance credited to the DROP participant as described in subsection (c).
(1985 Code, Art. 7, § 1-508) (Bill No. 90-01; Bill No. 66-05; Bill No. 74-09; Bill No. 40-10; Bill No. 64-13; Bill No. 50-15; Bill No. 56-16; Bill No. 66-18; Bill No. 55-20; Bill No. 58-23)