1. (a)

   1. (1) The DROP period will conclude at the date of termination of employment but no later than five (5) years after the date that the individual member began participation in the DROP.
   2. (2) Termination of employment means leaving the employment of the department for any reason.
   3. (3) The DROP period may be extended to ten (10) years as defined in 24 CAR § 20-1011.

2. (b)

   1. (1) At the conclusion of the DROP period, the DROP account will be distributed.
   2. (2) This distribution is described in 24 CAR § 20-1008.
   3. (3) Acts 2003, No. 1371, allows a city to elect to allow participants to defer the receipt of their DROP account after the conclusion of the DROP period.

3. (c)

   1. (1) The monthly benefit that will be received by the member after the DROP period is the retirement benefit as calculated at the date the member began DROP.
   2. (2) The monthly benefit does not change after the enrollment in DROP, except as described below.
   3. (3) This same monthly amount is now paid to the individual member instead of into the DROP account.

   4. (4) The retirement benefit at the end of the DROP period:

      1. (A) Does not change with the increase in salary during the DROP period;
      2. (B) Does not change with extra service during the DROP period; and
      3. (C) Is the same amount as was being credited to the DROP account.

   5. (5) There are two (2) exceptions:

      1. (A) The age sixty (60) bonus, based on having over twenty-five (25) years of service earned before the enrollment in DROP, starts at age sixty (60); and
      2. (B) Any benefit increases granted to all retirees, or overall benefit increases, may also be given to persons on DROP.
4. (d) Disability benefits. The provisions of this subpart do not restrict a local board's authority to provide for disability retirement benefits of DROP participants pursuant to existing law.

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