DROP OVERVIEW Sample Clauses

DROP OVERVIEW. Effective January 11, 2007, any Employee who is a member of the City of Dearborn Heights Police and Fire Act 345 Retirement System may at any time voluntarily elect to participate in the City of Dearborn Heights Police and Fire Retirement System Deferred Retirement Option Plan (hereinafter “DROP”) after attaining the minimum requirements for a full, unreduced normal service retirement/pension or as provided for in their respective bargaining agreement or any such Employee who has attained twenty five (25) years of service credit. Upon commencement of DROP participation, the Participant’s DROP Benefit shall be the dollar amount of the Employee’s monthly pension benefit computed by using the contractual guidelines and formula(s) that are in effect on the particular DROP date. During participation in the DROP, the Participant continues with full employment status, receives all future promotions and benefit/wage increases, and is considered an employee of the City of Dearborn Heights The Participant’s DROP Benefit shall be credited monthly to the Participant’s DROP Account which shall be established within the City of Dearborn Heights Police and Fire Retirement System (the “Police and Fire Retirement System”). The Participant’s DROP Account shall be maintained and managed by the Board of Trustees of the Police and Fire Retirement System (the “Retirement Board”). Upon termination of employment, the Participant shall retire and will begin to receive payment(s) from his/her individual DROP Account as described herein. The DROP payment(s) are in addition to all other contractual pension benefits. The Participant is solely responsible for analyzing the tax consequences of participation in the DROP.