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5 Year vs. 4 Year Backdrop Period

Oct 21, 2020, 13:57 PM by MOSERS
What is the difference between taking a 5 year vs. a 4 year backdrop?  Do you wait one year after you retire for the 4 year backdrop?  

When we calculate your monthly benefit we use your final average pay (FAP) and credited service as of your BackDROP date. This is where the difference between 4 and 5 years would come into play. The 5-year milestone significance is that it is the longest BackDROP period allowed by the state statutes. It is likely that your monthly payments will be lower if you take BackDROP than they would be without BackDROP. You may be able to increase your monthly payment by not electing BackDROP or by electing a BackDROP period of 4 years rather than 5. On the other hand, if you elect a 4-year (or shorter) BackDROP period, you should expect that your lump-sum amount will go down. A MOSERS benefit counselor can provide you with estimates for all your options.

If you elect BackDROP, we will issue your lump-sum payment on the same day as your first monthly benefit payment.

Please see our BackDROP page or contact a MOSERS benefit counselor for more information.

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