Deferred Retirement Option Program Clause Samples
The Deferred Retirement Option Program (DROP) clause establishes a system that allows eligible employees, typically in public sector roles, to continue working for a set period while their retirement benefits accumulate in a separate account. Under this arrangement, employees formally retire for pension purposes but remain on the job, with their monthly pension payments deposited into an interest-bearing account until they fully separate from service. This clause provides employees with a financial incentive to delay full retirement, while also helping employers retain experienced staff for a defined period.
Deferred Retirement Option Program. Employees may participate in the Deferred Retirement Option Program (DROP) in accordance with the appropriate Florida Statute and School Board Policy.
Deferred Retirement Option Program. (DROP) The program shall be administered pursuant to Florida Statutes.
Deferred Retirement Option Program. The Parties agree to establish a Deferred Retirement Option Program (DROP) generally consistent with the principles and structure of the existing program for Fire and Police personnel. The proposed DROP is anticipated to contain the following minimum features: cost neutrality; eligibility for all members of the Retirement Plan who qualify for an unreduced retirement formula; five-year eligibility window; and re-evaluation after three (3) years. Articles 37.1 through 37.6 constitute a jointly drafted recommendation of the City and Local 18, and shall not become binding in whole or in part, unless and until finally adopted by the Retirement Plan’s Board of Administration.
Deferred Retirement Option Program. The Parties agree to establish a Deferred Retirement Option Program (DROP) generally consistent with the principles and structure of the existing program for Fire and Police personnel. The proposed DROP is anticipated to contain the following minimum features: cost neutrality; eligibility for all members of the Retirement Plan who qualify for an unreduced retirement formula; five-year eligibility window; and re-evaluation after three (3) years.
Deferred Retirement Option Program. The Parties agree that the County and FOP #4... will convene a labor management committee to develop options for a Deferred...
Deferred Retirement Option Program. A Consolidated Pension Plan member who has selected to receive Longevity payments rather than general (COLA) increases must, in order to enter and continue to participate in the Deferred Retirement Option Program (DROP), forego receipt of all general (COLA) salary increases effective after the member’s entry into the DROP. This member must, in order to enter and continue to participate in the DROP, forego receipt of all merit increases after the member’s entry into the DROP to the extent such increases would result in the member’s base salary exceeding the top of the salary range of the regular classification he/she was in, as it existed when he/she entered the DROP. Such participants in the DROP remain eligible to receive a promotional increase but subsequent merit increases would be limited as described above.
Deferred Retirement Option Program. The District agrees to amend its contract with the Public Employees Retirement System to adopt the Deferred Retirement Option Program if that program becomes available. Either Party, upon notice of the availability of the program, will notify the other, and the Parties will meet to evaluate the scope and nature of the program. The District agrees to adopt the program immediately, providing there is no net cost to the District.
Deferred Retirement Option Program. The County and FOP 89 agree to establish a cost-neutral Deferred Retirement Option Program (DROP) for Police Pension Plan participants effective on January 1, 2019. The terms of the DROP shall be cost-neutral to the County and the Police Pension Plan, and shall be substantially similar to the comparable plan recently agreed to by the County and the International Association of Fire Fighters (IAFF) Local 1619, covering sworn fire fighters (with upward adjustments for the number of employees eligible). Should the Pension Plan’s actuary determine that this DROP is not cost-neutral when applied to the Police, then the parties shall meet to adjust the DROP to ensure cost-neutrality no later than August 31, 2018.
Deferred Retirement Option Program. (DROP)
A. Employees enrolled in DROP will no longer earn FRS retirement credit even though he/she continues as an employee in a regular established position for the established drop period.
1. Accumulated vacation will be paid at the rate of one hundred percent (100%) of the current rate of pay at the declaration of DROP.
2. Vacation will continue to accrue at the normal rate per month. At the end of the DROP period the maximum accumulated vacation eligible for compensation during the DROP period shall be 15 days.
B. At the declaration of DROP, accumulated sick leave shall be paid for unused sick leave at ninety percent (90%) of the current rate of pay. Payment shall be evenly distributed over the DROP employment period.
1. In the event the Board and the Union negotiate an end to the 401(a) program, accumulated sick leave shall be paid for unused sick leave at eight-five percent (85%) of the current rate of pay.
C. While enrolled in DROP the employee will continue to accrue sick leave time. The Board shall provide terminal pay to an employee at termination of the DROP period. Such terminal pay shall be an amount determined by the final daily rate of pay of employment at termination or death multiplied by eighty percent (80%) of the employee’s accumulated leave days.
1. In the event the Board and the Union negotiate an end to the 401(a) program, terminal pay shall be an amount determined by the final daily rate of pay of employment at termination or death multiplied by seventy-five percent (75%) of the employee’s accumulated leave days.
D. Terminal pay to all eligible employees shall be made to a 401(a) Qualified Retirement Plan to be selected jointly by the Board and the Union. Payments shall be made in accordance with Federal regulations.
E. Ownership of the 401(a) account shall belong to the employee.
Deferred Retirement Option Program. 4 A Consolidated Pension Plan member who has elected to receive 5 Longevity payments rather than general (COLA) increases must, in order 6 to enter and continue to participate in the Deferred Retirement Option 7 Program (DROP), forego receipt of all general (COLA) salary increases 9 order to enter and continue to participate in the DROP, forego receipt of 10 all merit increases after the member’s entry into the DROP to the extent 11 such increase would result in the member’s base salary exceeding the top 12 of the salary range of the regular classification he/she was in, as it existed 13 when he/she entered the DROP. Such participants in the DROP remain 14 eligible to receive a promotional increase, but subsequent merit increases 15 would be limited as described above.