Return Home

Member Resources

DROP

RETRO DROP

The retroactive deferred retirement option plan, referred to as RETRO DROP Option, is a one-time benefit paid at retirement with a reduced monthly retirement benefit that is only available for members with 23 years of creditable service as of March 31, 2015. The DROP is a way to take a lump sum amount in retirement pay and still receive a monthly annuity. This DROP program reverts back to a date the member selects, which effectively retires them, using the last 36 months of employment wages from that date. Any future pay raises after the effective date will not compute in the DROP amount or the monthly annuity for the length of time they are received. If an officer is near retirement and recently received a pay raise, then to maximize the DROP option, the officer would need to work 36 months after this higher wage rate to compute it in the DROP and monthly annuity.

Certain selections of options and beneficiary designations other than a surviving spouse may have adverse consequences under the Internal Revenue Code of 1986, which may cause a reduction in the amount of benefit payable. You are urged to consult your attorney or tax advisor prior to a final selection of an option.

Forward DROP

The Forward DROP, is a one-time benefit that allows active police officers defer their annuity benefit payment into a DROP account while still working and before actual retirement

There are two Forward DROP options known as the Five Year Forward DROP and Seven Year Forward DROP. To be eligible for the Five Year Forward DROP a member must have at least 23 years of creditable service by February 17, 2016. The maximum period allowed to defer annuity payments in the Five Year Forward DROP is 60 months. Members who achieve 23 years of creditable service after February 17, 2016, will only be eligible for the Seven Year Forward DROP. The maximum period allowed to defer annuity payments in the Seven Year Forward DROP is 84 months.

A member’s election to participate in the Forward DROP is irrevocable. See all applicable rules for the Five Year or Seven Year Forward DROP in the policies listed below.

Certain selections of options and beneficiary designations other than a surviving spouse may have adverse consequences under the Internal Revenue Code of 1986, which may cause a reduction in the amount of benefit payable. You are urged to consult your attorney or tax advisor prior to a final selection of an option.

back to top

site by white lion