Deferred Retirement Option Program (DROP Clause Samples

Deferred Retirement Option Program (DROP. The University will participate in the Deferred Retirement Option Program to the full extent provided under State law. The DROP program is complex. Faculty should consult a Human Resources specialist at the University with expertise in this area before making a decision about participating in this program.

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 but shall not be carried from one fiscal year to the next. At the end of the DROP period the maximum accumulated vacation eligible for compensation during the DROP period shall be 15 days. 3. Employees entered into DROP shall be credited five (5) days of their allotted vacation days as of July 1 of each year. 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 (DROP. A. Optional Participation An employee's participation in the DROP is optional on the employee's part. B. Employment Status Employees who have elected to participate in DROP will be considered active employees of the Board while awaiting separation. They will accrue all salaries and benefits consistent with other active employees.

Deferred Retirement Option Program (DROP. 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 (DROP. Employees who choose to enter the DROP plan may sell back up to a maximum of 500 hours of accrued vacation leave hours before entering the program.

Deferred Retirement Option Program (DROP. General employees who were hired prior to July 1, 2007 may elect a Deferred Retirement Option Program (DROP) upon eligibility. Eligibility is based on a combined total of age and qualifying service of at least 85 and a minimum age of 55 (e.g., 30 years service + 55 years old = 85). Qualifying service includes unused sick time and military time but excludes outside transfer service. Elected officials and appointed department heads are not eligible. The DROP allows eligible members to receive a lump sum payment at retirement in exchange for a reduced monthly benefit. When a member enters the DROP, they continue to work, their pension benefit is determined, and a DROP account is established in ERS. The DROP account is a personal retirement account that accumulates monthly pension payments, applicable retiree cost-of-living adjustments, ERS payroll contributions, an annual interest credit of 5%, and a one- time credit of unused sick time earned in the DROP period. The DROP period is a minimum of 5 years and a maximum of 10 years. However, electing the DROP does not obligate the member to work an additional 5 years. The member may opt out of the DROP at any time and be treated as if they had not elected to enter the DROP. When a DROP member retires, the DROP account may be paid to the member in a single lump sum or rolled over into an eligible retirementplan. A member in the DROP may use sick time earned prior to entering the DROP. If the member uses more sick time than earned in the DROP period, the member’s pension payments and DROP account will be recalculated accordingly. If the member used that sick time to meet DROP eligibility, the DROP election date will be adjusted.

Deferred Retirement Option Program (DROP. A. Employees who choose to enter the DROP plan may sell back up to a maximum of 500 hours of accrued personal leave hours before entering the program. B. If the employee chooses to sell back accrued personal leave hours before entering the DROP plan, the maximum accrual shall remain at three years. Upon final retirement, the employee shall be eligible to sell back three years’ worth of accrued and unused personal leave minus the amount sold back before entering the DROP.

Deferred Retirement Option Program (DROP. An eligible member of the Florida Retirement System may elect to defer retirement benefits while continuing employment for a specified time not to exceed sixty (60) months following normal 1837 1838 1839 1840 1841 1842 1843 1844 1845 1846 1847 1848 1849 1850 1851 1852 1853 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 retirement age or years of service.

Deferred Retirement Option Program (DROP. An eligible member of the Florida Retirement System or Teacher Retirement System may elect to defer retirement benefits while continuing employment for a specified time not to exceed sixty