State of Arizona

Contact the Arizona DROP

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Arizona Deferred Retirement Option Plan (DROP)

Deferred Retirement Option Plan (DROP) is an optional program in which members of a defined benefit plan choose to freeze their regular monthly retirement benefit and have it deposited each month into a separate account with their employer while continuing to work for and draw a salary from their employer.

If you have 20 or more years of credited service under the Arizona Public Safety Personnel Retirement System, you may enter into a DROP program with your employer. Under the DROP program, you must voluntarily and irrevocably elect to enter into the program with your employer for a period of up to 60 months. During the DROP period, you remain in the employment of the employer as a full-time paid firefighter or full-time paid certified peace officer, but no member or employer contributions are made to the system. This means no additional years of credited service are accrued on your behalf. Your monthly pension is calculated based upon your years of credited service and average monthly compensation at the beginning of the DROP period. This monthly pension amount is credited to a DROP account with interest currently at 8.5%

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Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.