Frequently Asked Questions

What are the basic requirements for retirement or DROP eligibility in the City Parish Employee's Retirement System (CPERS)?

25 years of service at any age or 10 years of service at age 55.

How are retirement benefits computed? The basic formula is:

Number of years of creditable service
X   Retirement Factor
X   Average Compensation

Note: Retirement factor is 3.0% per year if creditable service totals 25 or more years. Otherwise it is 2.5% per year.

When is a CPERS member considered vested?

Normal vesting is achieved at 10 years of service.

What types of service are recognized as creditable service?

In addition to regular service attained by employment with a CPERS employer, a member may receive credit for accrued vacation and sick leave traded in. CPERS also allows up to 3 years of military service at no cost, and additional military service if purchased. A member may also purchase service for which the member paid retirement contributions to another Louisiana public employees’ retirement system.

If I worked for one of the CPERS employers in the past, but quit and received a refund of retirement contributions, can I receive credit for that period of service?

Yes.  Such service can be purchased, and is calculated as the amount of the refund plus accumulated interest at 8.0% from the date of the refund to the date of repurchase. CPERS allows up to 4 years for repayment with no additional interest, or 6 years with additional interest.  Payroll deduction is allowed.

Are retirement benefits available if I get disabled?

Yes.  If the disability is incurred on the job, you are covered from date of Employment by a minimum 50% disability benefit.  This benefit carries a surviving spouse benefit as well.  If the disability is not work-related, you must have 10 years of creditable service for coverage, which is also a minimum of 50%.

What is the DROP?

The Deferred Retirement Option Plan is a type of pre-retirement plan in which the employee can enroll and defer receipt of his/her retirement payments for a period of time while continuing employment. In effect, the member’s monthly pension is calculated and upon DROP entry, that amount is placed in an interest-bearing account available to the employee at actual time of retirement from employment. The member must enter into a binding contract in order to participate in the DROP.

What are the requirements for entry into the DROP?

A member must be eligible for a normal service allowance retirement as outlined in the answer to question #1 above.  Members with 25 years of creditable service can participate in DROP for up to 5 years, while members with less than 25 years can participate for up to 3 years.

Am I required to participate in DROP?

No. DROP is available for eligible members but there is no requirement that you participate.

What surviving spouse options are provided?

For active contributing members with less than 20 years of service, the surviving spouse receives $600 per month until remarriage or death, whichever occurs first. Surviving spouses of active members with 20 or more years receive an actuarially computed survivor benefit based on the member’s benefit at time of death.

Survivors of retirees receive an automatic 50% surviving spouse benefit at no cost to the member, or a higher amount (usually 75% or 100%) if purchased by the member at the earlier of DROP entry or retirement.