Deferred Retirement Option Program - DROP

The DROP Plan allows members who reach the Normal Retirement Date, age 55 or 30 years of service, (whichever occurs first), the opportunity to retire with the Pension Plan and continue their employment for up to 36 months.  Retirement pension money paid during the DROP Period is placed tax-deferred into a DROP Account and accrues interest at the Plan’s Actuarial Rate of Return (currently 7.5%).  At the end of the DROP Period, employment with the City is terminated and the monthly retirement pension is then sent directly to the member or their bank.  The DROP Account money may then be either withdrawn in a lump sum (and fully taxable), rolled over into another tax deferred vehicle (IRA, 457, 403(b), 401(k), etc.), or some combination of the two choices.

DROP DATE TIMEFRAMES

You need to complete the following paperwork for joining the DROP Plan to maximize your DROP benefits as shown below:

  • The Election of DROP Participation Form must be submitted to the Pension Office at least 90 days (3 months) before your Normal Retirement Date.
     
  • The OWBPA Acknowledgement, Waiver, and Release Form and the Irrevocable Letter of Resignation Form must be submitted at least 45 days before your Normal Retirement Date.

Remember, any delay in turning in the paperwork beyond your Normal Retirement Date will result in a proportional amount of time deducted from the full 36 month DROP Period.

All forms are available in the Pension Office.


As of January 14, 2004, the DROP Plan has been terminated for members of the City’s Teamster's bargaining unit. However, the DROP Plan is still available to the City’s Management, Confidential, Non-Classified, and Affiliated Agency employees.

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