PROP

The PROP account is an investment vehicle that was established on September 1, 2001 to allow members to elect to roll their lump sum DROP monies into it and earn a rate of return to be established by APRS annually. It is a notional account that does not actually contain cash, stocks, bonds or other securities like a 457-plan account. The PROP account is a bookkeeping account only and a member's PROP balance is invested right along with the other assets of APRS.

Under the rules adopted by the Board of Trustees, retiring and retired members may elect to defer receipt of all or a portion of their monthly annuity in order to defer the taxation of the deferred payments and to have the deferred benefits accumulate for later disbursement and later taxation in a PROP account.

Yes. The interest credit rate for the 2025 plan year is 4.19%. 

Yes, members can still receive health insurance from the City as a Retiree who is deferring their monthly annuities. 

Yes, the PROP policy allows members to make two partial distributions a year with a total withdrawal option after a 90 day inception period. Members could suffer severe and adverse financial consequences as a result. Members who retire before age 50 and take distributions from their PROP account prior to age 59 ½  will be required to rollover their distribution to another qualified retirement plan and may be subject to a ten percent (10%) early distribution tax penalty on monies withdrawn in addition to regular income taxes on any amounts withdrawn. The taxes will apply to all withdrawals whether from contributions or any accumulated earnings.

Yes, a member can make an election to defer all or a specified portion of their monthly annuity into the PROP. In the event that the member elects to only defer a portion of each payment into PROP, the portion so deferred may not be less than $250.00 per month.

No. Acceptance of a QDRO by the APRS entitles a member's ex-spouse to receive any monies payable pursuant to the QDRO at the time the member actually terminates employment with the APD and is entitled to a distribution of funds from the APRS.