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

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. Employees X. Xxxxxxxxx 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.