Common use of Deferred Retirement Option Plan (DROP Clause in Contracts

Deferred Retirement Option Plan (DROP. Effective January 1, 2007, the existing pension plan shall be modified to provide for a deferred retirement option plan (DROP). The Drop shall be designed by the plan actuary in an actuarially neutral manner, which will allow police officers who are eligible for retirement under the Pension Plan to retire while still continuing their employment for a period not to exceed three (3) years. In order to enter the DROP Program, a retirement eligible officer must make the request in writing and specify the date on which he will separate from employment. During the period of time a member is in the DROP Program, the officer’s monthly pension benefit shall be deposited in a self-directed deferred compensation account, such accounts to be mutually agreed to by the parties. Notwithstanding any other provision of the Agreement, if an officer elects to enter the DROP, the officer will begin participating in the retired member’s healthcare plan that is in effect at the time of entry into the DROP. While the member remains in the DROP, the annual contribution towards the cost of retiree health care/prescription coverage shall be deducted in equal amounts from the first (1st) two (2) pays of each month.

Deferred Retirement Option Plan (DROP. Effective January 1, 2007, the existing pension plan shall be modified to provide for a deferred retirement option plan (DROP). The Drop shall be designed by the plan actuary in an actuarially neutral manner, which will allow police officers who are eligible for retirement under the Pension Plan to retire while still continuing their employment for a period not to exceed three (3) years. In order to enter the DROP Program, a retirement eligible officer must make the request in writing and specify the date on which he will separate from employment. During the period of time a member is in the DROP Program, the officer’s monthly pension benefit shall be deposited in a self-directed deferred compensation account, such accounts to be mutually agreed to by the parties. Notwithstanding any other provision of the Agreement, if parties When an officer elects to enter into the DROP, the officer will begin participating in the retired member’s officers’ healthcare plan that is that’s in effect at the time of entry into the DROP. While the member officer remains in the DROP, the annual contribution towards the cost of retiree health care/prescription coverage premium shall be deducted in equal amounts from the first (1st) two (2) pays of each month.