What is the Deferred Retirement Option Plan (DROP)?
In lieu of terminating employment and retiring and you have at least 20 years of service and at least age 50 you are eligible to participate in DROP and defer receipt of benefits. You can participate only once for a maximum of 3 years. You continue working but no longer contribute to the retirement system. Your benefit amount is then calculated and deposits are made monthly to your DROP account. You will receive quarterly statements showing your balance.
The Deferred Retirement Option Plan (DROP) was discontinued for new participation effective December 31, 2005. Any eligible members who wanted to initiate participation in DROP must have done so by December 31, 2005. Current participates in DROP are unaffected. Legislative Updates Effective September 1, 2005, several law changes went into effect, with the exception of those members who have been grandfathered (exempted) from the benefit calculation changes as noted below: Benefit Calculation Grandfather Provisions If a member meets any one of the following criteria on or before August 31, 2005, they are grandfathered (exempt) from the following changes and their retirement benefit calculation will not be affected by these changes: at least 50 years old, or age and years of service credit equal at least 70 (“Rule of 70”), or have at least 25 years of service credit Members who do not meet one of the above grandfather provisions by August 31, 2005 will be subject to the following new law
