DROP Payment Clause Samples
The DROP Payment clause defines the conditions under which a specific payment, known as a "DROP payment," is made or withheld in a contractual relationship. Typically, this clause applies in scenarios where a party fails to meet certain obligations, such as delivery milestones or performance targets, resulting in the forfeiture or reduction of a scheduled payment. For example, if a supplier does not deliver goods by an agreed deadline, the DROP Payment clause may allow the buyer to withhold a portion of the payment. The core function of this clause is to incentivize compliance with key contract terms and to allocate financial risk in the event of non-performance.
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DROP Payment. Upon termination of employment, the retiree shall receive the monthly retirement benefit previously credited to his/her DROP account. Failure to terminate employment at the expiration of the DROP Participation Period shall result in forfeiture of the employee’s monthly pension benefit otherwise payable to the DROP account until termination of employment. Interest on the DROP account will continue to accrue during such a forfeiture, except as provided in Subsection ▇.
DROP Payment. Overview The LCWSA will offer a drop payment program to employees who decline coverage under the LCWSA’s health insurance plan provided by this Article. Employees who withdraw from and/or waive LCWSA coverage and who provide proof of health insurance coverage from another source, shall be eligible for the drop payment program based on the type of coverage, Family (defined for purposes of this section as coverage other than single) or Single, for which they would be eligible under the LCWSA’s health insurance plan. Procedure to Participate in Drop Payment Program Any employee eligible for LCWSA health insurance coverage who wishes to decline coverage and participate in the drop payment program must sign and submit to the LCWSA Office of the Executive Director an affidavit indicating that the employee has health insurance coverage through a spouse’s/domestic partner’s employment, other employment of the employee, or a private plan. As set forth below, the timing of the submission of such affidavit may affect the amount of the drop payment by way of pro-ration. Drop Payment Amounts and Dates of Payment The Single coverage drop payment shall be in the amount of nine hundred dollars ($900) annually, and the Family coverage drop payment shall be in the amount of one thousand one hundred fifty dollars ($1,150) annually.