Deferred Retirement Option Plan Clause Samples
A Deferred Retirement Option Plan (DROP) is a retirement benefit arrangement that allows eligible employees to continue working for a specified period while their retirement benefits accumulate in a separate account. During participation in the plan, the employee's pension payments are deposited into this account, often earning interest, instead of being paid out directly. This clause provides employees with the flexibility to extend their careers while securing additional financial benefits, and it helps employers manage workforce transitions by offering a structured path to retirement.
Deferred Retirement Option Plan. (DROP) Employees in the bargaining unit are eligible for the DROP program in accordance with the terms of the County of San ▇▇▇▇ Obispo Employees’ Retirement Plan. DSA shall defend, indemnify and save harmless the County of San ▇▇▇▇ Obispo and the Pension Trust, its officers, agents and employees from any and all claims, demands, damages, costs, expenses, or liability, including, but not limited to, liability for back taxes, and all claims of any type by the Internal Revenue Service, the California Franchise Tax Board, unit members, or their heirs, successors, or assigns, arising out of this Agreement to implement the Deferred Retirement Option Plan (DROP).
Deferred Retirement Option Plan. Employees hired on or after July 1, 2005, are not eligible for the Deferred Retirement Option Plan (“DROP”). Article 4, Division 14 of the Municipal Code will be revised to reflect this change.
Deferred Retirement Option Plan. After September 30, 2012, employees shall be eligible to participate in the Deferred Retirement Option (DROP) in the same manner as Florida Retirement System participants. Specifically, people entering the DROP on or after October 1, 2012, will 1.3% interest on their DROP accumulations and will not receive COLAs on their pension amounts until they are fully retired.
Deferred Retirement Option Plan. (Employees Hired On or After July 1, 2005) Employees hired on or after July 1, 2005, are not eligible for the DROP, as set forth in San Diego Municipal Code Section 24.1402.1.
Deferred Retirement Option Plan. (DROP). The Employer shall seek the introduction of legislation to the County Council, on or before April 1, 2015, to amend the ▇▇▇▇▇▇▇▇▇▇ County Code, Chapter 33, Article III to provide for a Deferred Retirement Option Plan (DROP) for sworn deputy sheriffs and uniformed correctional officers under a new Section 33-38A(c), established as follows, with an effective date of July 1, 2015: Any employee who is a sworn deputy sheriff or uniformed correctional officer (as defined in (a)) who meets the eligibility requirements may elect to retire but continue to work and have pension payments contributed to a DROP account. Pension payments must not be paid to the employee while the employee participates in the DROP. When the employee’s participation in the DROP ends, the employee must stop working for the County, begin receiving pension benefits based on the employee’s credited service and earnings as of the date that the employee began to participate in the DROP, and receive the DROP account balance.
Deferred Retirement Option Plan. Section 1 Definitions
Deferred Retirement Option Plan a) Effective 1/1/05, for any employee who is a member of the bargaining unit on 1/1/05: Upon attaining 30 years of service and becoming at least 50 years of age may elect to participate in a Deferred Retirement Benefit Option Plan for a period not to exceed 5 years. Such election will be irrevocable. Service by any employee as provided for in Section 2- 248(C) of the retirement ordinance shall be counted for purposes of meeting the 30 years service requirement in this section.
b) Upon commencement of the participation, the participant’s benefit shall be the dollar amount of the member’s monthly pension benefit computed in accordance with the current collective bargaining agreement for a regular service retirement—including whatever adjustments made for such benefit payment options as selected by the member.
c) A participating employee’s deferred retirement account will be initially credited with the amount of the annuity withdrawal, if elected. Thereafter the account is credited monthly with the benefit as described in #2 above. Interest will be credited to the account at 4% annually.
d) During participation in the deferred retirement option, employee contributions to the retirement plans (pension & retiree health care funds) cease.
e) During participation in the deferred retirement option: • Vacation leave balances and provisions remain in place. Unused accrued vacation leave shall be paid at time of final separation. • Sick leave balances and provisions remain in place. Unused accrued sick leave, as provided for in the collective bargaining agreement, shall be paid at time of final separation. • All insurance coverages provided for in the collective bargaining agreement remain in place until final separation.
f) Participation continues to the earlier of termination of employment as a command officer or 5 years from the initial participation date.
g) Upon separation from employment, the full benefit as described in #2 above becomes payable to the retired employee. In addition, the retired employee may elect a lump sum distribution of the deferred retirement account as described in #3 above; or may elect to convert the deferred retirement account to an actuarially equivalent monthly benefit.
h) Death during participation in the deferred retirement option: Benefits determined as if the officer had retired the day preceding death.
Deferred Retirement Option Plan. Drop The Deferred Retirement Option Plan is eliminated for bargaining unit members promoted to Captain on or after May 1, 2007. Current bargaining unit members participating in the DROP will be allowed to maintain money in their DROP account until age 59.5 or upon separation of employment, whichever is later. Specifications for the DROP are contained in APPENDIX “C”. An employee’s seven percent (7.00%) contribution to the Act 345 pension system will cease for current employees participating in the DROP.
Deferred Retirement Option Plan