Deferred Retirement Option Program (DROP. Notwithstanding any other provision of this Agreement (with specific reference to Article 12 and Article 14) and no earlier than September 1, 2001, the Association or the County agrees to meet and confer with the other party upon request regarding a cost-neutral Deferred Retirement Option Program (DROP) and to re- open those provisions of this Agreement which may be affected.
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. 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. 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. 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 retirement plan. 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. 1. Effective July 1, 1998, employees who qualify for the Deferred Retirement Option Program (DROP) may elect to participate in that program as provided by the procedures set forth by the district and by Florida Statute 121.091. An employee’s salary, benefits, terms, and conditions of employment, as specified in this Agreement will remain in full force during the employee’s participation in the DROP. An employee can void his/her DROP participation at the DROP termination date, re-enroll in FRS and continue in his/her current position in the district, by making such request in writing to the Board at least thirty (30) calendar days prior to his/her original DROP termination date. An employee may resign his/her employment with the Board and terminate his/her participation in DROP prior to the original DROP termination date by submitting an amended resignation to the Board.
2. Employees who elect to enter DROP and elect to receive a lump-sum payment of accrued vacation (annual) leave earned in accordance with Board policy upon beginning participation in DROP, shall have said lump- sum payment paid into a Board-approved 401(a) Qualified Retirement Plan and/or an Employer Paid 403(b) Plan subject to annual contribution limits. Employees who receive a lump-sum payment of accrued (annual) leave upon termination of DROP and termination of employment shall have said lump-sum payment paid into a Board–approved 401(a) Qualified Retirement Plan and/or an Employer Paid 403(b) Plan subject to annual contribution limits.
3. Effective July 1, 1999, employees who enter the Deferred Retirement Option Program (DROP) and are eligible for one hundred percent (100%) of their accumulated terminal sick leave in accordance with the Meritorious Attendance Incentive Pay, Article X, Section G of the Instructional Master Contract, shall have their accumulated terminal sick leave paid into a Board-approved 401(a) Qualified Retirement Plan and/or an Employer Paid 403(b) Plan subject to annual contribution limits and according to the following.
4. The initial payment will be made on June 30th following the employee’s DROP effective date. Subsequent payments shall be made each June 30th following the employee’s DROP effective date anniversary. Payment Payment Date Maximum Percentage of Accumulated Terminal Sick Leave Days 1 June 30 23.3% 2 June 30 25.6% 3 June 30 36.0% 4 June 30 50.8% 5 or more June 30 86.1% Final Upon Separation 100.0%
Deferred Retirement Option Program (DROP. 13.2.2.1 Parties agree that SLOCEA Trades employees are eligible to participate in the voluntary Deferred Retirement Option Program (DROP) pursuant to Article 26 of the Retirement Plan. DROP provides employees who are eligible for retirement to continue to work for the County after entering into Deferred Retirement status during which the employee’s Service Retirement Allowance will be paid into a DROP account. It is understood that all provisions of DROP must conform to applicable laws. Modifications to DROP may be necessary to assure compliance with those laws. If modifications are necessary, the County shall notify SLOCEA. Modifications required to conform to applicable laws shall supersede any conflicting provisions in this section. An employee enrolled into DROP retains all rights, privileges and benefits of being an active County employee, except as specifically modified by Article 26 of the Retirement Plan. The employee enrolled in DROP continues to be eligible for the active employee Cafeteria 125 Plan benefits and is not eligible for retiree health benefits. Under DROP, the employee’s individual monthly Service Retirement Allowance and related cost of living adjustments if applicable, along with applicable Additional Contribution Account amounts will be deposited into an account maintained for the employee under the provisions of DROP. The employee’s Service Retirement Allowance shall be calculated on the date that the employee enters the DROP and is not recalculated at the time the employee actually terminates permanent employment with the County.
13.2.2.2 Upon entering DROP, the employee’s and the employer’s contributions to the Retirement Plan cease. A member may enroll in DROP for a period no less than six (6) months and not to exceed sixty (60) months.
13.2.2.3 SLOCEA shall defend, indemnify and save harmless the County of San Xxxx 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 Program (DROP).
