Common use of DROP Clause in Contracts

DROP. 1. City contends that the Deferred Retirement Option Plan (DROP) is an employment benefit subject to modification through the meet and confer process. Despite DCAA’s disagreement with this contention, the Parties agree that, during the term of this MOU, they will meet and confer over proposals to modify DROP to make DROP “cost free” to City. The Parties acknowledge that City’s proposals will modify DROP to make DROP “cost free” as defined by City and may include any and all aspects of DROP, including but not limited to, all of the DROP alternative plan design proposals set forth in a study by Buck Consultants presented by City to DCAA on March 14, 2012, or any variations of the alternative proposals which change numbers or percentages reflected in the Buck study. However, by agreeing to meet and confer regarding proposals to modify DROP, DCAA is not waiving its right to challenge any proposed modification to DROP on the basis that it may impair a constitutionally protected, individually vested pension benefit, or on any other ground. DCAA further reserves its right to argue, despite any contrary assertion by City, that the current unmodified DROP is, in fact, “cost free” within the meaning of reasonable actuarial principles and appropriate margins of error. Moreover, in agreeing to meet and confer regarding proposals to modify DROP, neither Party is waiving its rights to make any legal arguments or pursue any legal action related to any proposed DROP modification. 2. In the event City and DCAA reach agreement on any modifications to DROP, these modifications will become effective on the date agreed upon. In the event the Parties fail to reach an agreement, any impasse hearing related to DROP will be conducted in accordance with Council Policy 300-06 on a date to be agreed upon by the Parties but in no event before January 1, 2013. However, any impasse hearing related to the Parties’ meet and confer over DROP, including the aspects of DROP described above, will be separate from and not combined with any issues remaining for impasse in connection with the Parties’ meet and confer process for a new MOU for Fiscal Year 2014. 3. Interest will be credited to the member’s DROP accounts at a rate determined by the SDCERS Board of Administration.

DROP. 1. City contends that the Deferred Retirement Option Plan (DROP) is an employment benefit subject to modification through the meet and confer process. Despite DCAALocal 145’s disagreement with this contention, the Parties agree that, during the term of this MOU, they will meet and confer over proposals to modify DROP to make DROP “cost free” to City. The Parties acknowledge that City’s proposals will modify DROP to make DROP “cost free” as defined by City and may include any and all aspects of DROP, including but not limited to, all of the DROP alternative plan design proposals set forth in a study by Buck Consultants presented by City to DCAA Local 145 on March 14, 2012, or any variations of the alternative proposals which change changes numbers or percentages reflected in the Buck study. However, by agreeing to meet and confer regarding proposals to modify DROP, DCAA Local 145 is not waiving its right to challenge any proposed modification to DROP on the basis that it may impair a constitutionally protected, individually vested pension benefit, or on any other ground. DCAA Local 145 further reserves its right to argue, despite any contrary assertion by City, that the current unmodified DROP is, in fact, “cost free” within the meaning of reasonable actuarial principles and appropriate margins of error. Moreover, in agreeing to meet and confer regarding proposals to modify DROP, neither Party is waiving its rights to make any legal arguments or pursue any legal action related to any proposed DROP modification. 2. In the event City and DCAA Local 145 reach agreement on any modifications to DROP, these modifications will become effective on the date agreed upon. In the event the Parties fail to reach an agreement, any impasse hearing related to DROP will be conducted in accordance with Council Policy 300-06 on a date to be agreed upon by the Parties but in no event before January 1, 2013. However, any impasse hearing related to the Parties’ meet and confer over DROP, including the aspects of DROP described above, will be separate from and not combined with any issues remaining for impasse in connection with the Parties’ meet and confer process for a new MOU for Fiscal Year 2014. 32. Interest Effective July 1, 2009, interest will be credited to the memberMember’s DROP accounts account at a rate determined by the SDCERS Board of AdministrationAdministration (SDCERS Board). 3. Employees hired on or after July 1, 2005, are not eligible for DROP. Article 4, Division 14 of the Municipal Code has been revised to reflect this change.

DROP. 1. City contends that the Deferred Retirement Option Plan (DROP) is an employment benefit subject to modification through the meet and confer process. Despite DCAALocal 145’s disagreement with this contention, the Parties agree that, during the term of this MOU, they will meet and confer over proposals to modify DROP to make DROP “cost free” to City. The Parties acknowledge that City’s proposals will modify DROP to make DROP “cost free” as defined by City and may include any and all aspects of DROP, including but not limited to, all of the DROP alternative plan design proposals set forth in a study by Buck Consultants presented by City to DCAA Local 145 on March 14, 2012, or any variations of the alternative proposals which change changes numbers or percentages reflected in the Buck study. However, by agreeing to meet and confer regarding proposals to modify DROP, DCAA Local 145 is not waiving its right to challenge any proposed modification to DROP on the basis that it may impair a constitutionally protected, individually vested pension benefit, or on any other ground. DCAA Local 145 further reserves its right to argue, despite any contrary assertion by City, that the current unmodified DROP is, in fact, “cost free” within the meaning of reasonable actuarial principles and appropriate margins of error. Moreover, in agreeing to meet and confer regarding proposals to modify DROP, neither Party is waiving its rights to make any legal arguments or pursue any legal action related to any proposed DROP modification. 2. In the event City and DCAA Local 145 reach agreement on any modifications to DROP, these modifications will become effective on the date agreed upon. In the event the Parties fail to reach an agreement, any impasse hearing related to DROP will be conducted in accordance with Council Policy 300-06 on a date to be agreed upon by the Parties but in no event before January 1, 2013. However, any impasse hearing related to the Parties’ meet and confer over DROP, including the aspects of DROP described above, will be separate from and not combined with any issues remaining for impasse in connection with the Parties’ meet and confer process for a new MOU for Fiscal Year 2014. 32. Interest Effective July 1, 2009, interest will be credited to the memberMember’s DROP accounts account at a rate determined by the SDCERS Board of AdministrationAdministration (SDCERS Board). 3. Employees hired on or after July 1, 2005, are not eligible for DROP. Article 4, Division 14 of the Municipal Code will be revised to reflect this change.

DROP. 1. City contends that the Deferred Retirement Option Plan (DROP) is an employment benefit subject to modification through the meet and confer process. Despite DCAALocal 145’s disagreement with this contention, the Parties agree that, during the term of this MOU, they will meet and confer over proposals to modify DROP to make DROP “cost free” to City. The Parties acknowledge that City’s proposals will modify DROP to make DROP “cost free” as defined by City and may include any and all aspects of DROP, including but not limited to, all of the DROP alternative plan design proposals set forth in a study by Buck Consultants presented by City to DCAA Local 145 on March 14, 2012, or any variations of the alternative proposals which change changes numbers or percentages reflected in the Buck study. However, by agreeing to meet and confer regarding proposals to modify DROP, DCAA Local 145 is not waiving its right to challenge any proposed modification to DROP on the basis that it may impair a constitutionally protected, individually vested pension benefit, or on any other ground. DCAA Local 145 further reserves its right to argue, despite any contrary assertion by City, that the current unmodified DROP is, in fact, “cost free” within the meaning of reasonable actuarial principles and appropriate margins of error. Moreover, in agreeing to meet and confer regarding proposals to modify DROP, neither Party is waiving its rights to make any legal arguments or pursue any legal action related to any proposed DROP modification. 2. In the event City and DCAA Local 145 reach agreement on any modifications to DROP, these modifications will become effective on the date agreed upon. In the event the Parties fail to reach an agreement, any impasse hearing related to DROP will be conducted in accordance with Council Policy 300-06 on a date to be agreed upon by the Parties but in no event before January 1, 2013. However, any impasse hearing related to the Parties’ meet and confer over DROP, including the aspects of DROP described above, will be separate from and not combined with any issues remaining for impasse in connection with the Parties’ meet and confer process for a new MOU for Fiscal Year 2014. 32. Interest Effective July 1, 2009, interest will be credited to the memberMember’s DROP accounts account at a rate determined by a 3. Employees hired on or after July 1, 2005, are not eligible for DROP. Article 4, Division 14 of the SDCERS Board of AdministrationMunicipal Code has been revised to reflect this change.