This is an executive director update that many members in T-DROP have been waiting to receive!
The ATRS Board has approved the innovative Cash Balance Accounts (CBAs) program for T-DROP participants retiring from T-DROP. The rule to establish CBAs has been approved by the ATRS Board and is planned to be approved as an approved rule in late March. CBAs will allow a member to leave their T-DROP account balance with ATRS as a tax-deferred interest bearing account with VERY competitive interest rates. Members will have the comfort to know that ATRS will be the one paying the interest, standing behind, and protecting the member's principal in the CBA program. For members entering the CBA program on July 1st, the initial interest rate will be 2%. The longer a member's money is left growing tax-deferred at ATRS, the higher the interest rate that ATRS will pay. After 8 years, the interest rate that ATRS will pay on a member's CBA grows to 4%!
This executive director update explains how the ATRS Board developed the CBA, a little on how T-DROP works, the existing options for when a member retires from T-DROP, the details of the CBA program, and what CBA can mean to a member retiring from T-DROP. The attached update has a lot of details.
A copy of the CBA rule that the ATRS Board approved to begin in a standard rule-making process and
will approve as an immediate rule in late March is also attached. The ATRS Board continues to find ways
to provide members with quality options. The CBA program is just the latest innovation.
I hope to have two executive director updates out soon on the next regional meeting of the Public Retirement Committee of the General Assembly on April 16th and 17th in Monticello. I also hope to have another that provided a lot of detail on the T-DROP program. The focus in the update will be answering frequently asked questions on T-DROP and addressing some rumors and urban legends about T-DROP that need to be debunked.
If you have questions or need more information, please feel free to call me on my direct line at
go to the ATRS website at www.artrs.gov and sign up to get these updates automatically on your public
or private email address, or both. Over 2,800 people have already signed up to receive this email and other ATRS information via this list.
Click on the following document for more information:
Executive Director Update 2-10-12.pdf
Policy 10-3 Teacher Deferred Retirement Plan (TDROP).pdf