Each individual member's DROP account is credited with the following items during the DROP period:

1. (1)

   1. (A) DROP payments.
   2. (B) The DROP account is credited each month of the DROP period with the DROP payments.
   3. (C) The amount of the DROP payment is equal to the amount of monthly benefit that would have been received by the member if they had elected service retirement on the first day of the individual's DROP period;

2. (2)

   1. (A) Employer contributions.
   2. (B) For municipalities with a population over twenty thousand (20,000), one-half (1/2) of the employer matching contributions are credited to the DROP account.
   3. (C) That is, for firefighter plans and police plans that do not participate in Social Security, three percent (3%) of current salary, two percent (2%) of current salary is added to the DROP account for police plans that participate in Social Security.
   4. (D) Plans that have voluntarily agreed to a rate higher than six percent (6%) would contribute one-half (1/2) of that amount.
   5. (E) Effective July 1, 1999, for municipalities with a population under twenty thousand (20,000), and those over twenty thousand (20,000) where the local pension board has agreed, all of the employer matching contributions are credited to the local plan, not to the DROP account;

3. (3)

   1. (A) Employee contributions.
   2. (B) Effective July 1, 1999, for municipalities with a population under twenty thousand (20,000), and those over twenty thousand (20,000) where the local pension board has agreed, all of the employee contributions will be credited to the DROP account; and

4. (4)

   1. (A) Interest.
   2. (B) Interest is to be credited to the DROP account.
   3. (C) The interest rate to be used is defined in 24 CAR § 20-1005.

Codification Notes: “DROP” means deferred retirement option plan.