Common use of Deferred Retirement Option Plan (DROP Clause in Contracts

Deferred Retirement Option Plan (DROP. State Patrol employees hired after January 4, 1979 who are eligible for and elect to enter the Deferred Retirement Option Plan (DROP), shall be paid for all unused compensatory time at the time of entry into the Deferred Retirement Option Plan. Payment will be made at the employee’s hourly rate in effect at the time of entry into the Plan. This payment shall be made within the employee’s next two regularly scheduled pay periods. State Patrol employees hired on or prior to January 4, 1979 who are eligible for and elect to enter the Deferred Retirement Option Plan (DROP), shall be paid for all unused vacation leave, one quarter of his/her sick leave not to exceed 50 days, and compensatory time at the time of entry into the Deferred Retirement Option Plan. Payment received for unused vacation and sick leave accumulated during the final 3 years of service only shall be included in the final average monthly salary calculation. Payment will be made at the employee’s hourly rate in effect at the time of entry into the Plan. This payment shall be made within the employee’s next two regularly scheduled pay periods. Per Nebraska Revised Statute section 81-2041 State Patrol employees hired on or after July 1, 2016 are specifically prohibited from participating in the Deferred Retirement Option Plan (DROP).