The DROP Program (or Deferred Retirement Option Plan) allows eligible employees, who agree to retire in one, two, or three years, to cease participating in, and contributing to, the Retirement Plan. An employee is eligible to participate in the DROP Program if he or she has attained normal retirement age (as defined by the Retirement Plan) and has at least 25 years of service. Benefits of enrolling include increased take-home pay and receiving a lump sum upon retirement that can be rolled over to an individual retirement account or another qualified plan.
To enroll, you must complete and submit an election form during December, March, June or September agreeing to retire in one, two, or three years from the effective date of your participation.
For more information, please check the DROP Program FAQ’s here.
The decision to enroll in the DROP Program is irreversible, however, in September 2015, the City Council passed an exemption allowing DROP participants who signed up between September 1, 2012, and September 1, 2015, and whose effective date of retirement is between October 1, 2015, and September 1, 2018, to freeze their DROP period for a maximum of two years by submitting the necessary completed form by October 30, 2015.
For the DROP Limited Suspension Election form, please CLICK HERE.
For more information on the exemption, please check the FAQ’s or contact the Office of Health Wellness & Benefits for more information.