1. (a)

   1. (1) The duration of participation in the DROP may be extended to a maximum of ten (10) years.
   2. (2) This extension must apply to all active members and be approved by the local pension board.
   3. (3) The extension must also be approved by a majority vote of the governing body of the sponsoring municipality.

2. (b) The following differences exist between the extended DROP period and the preceding sections:

   1. (1)

      1. (A) Interest credited.
      2. (B) The interest credited to the DROP account has a minimum of zero percent (0%) instead of the assumed actuarial rate;

   2. (2)

      1. (A) Forfeiture of certain credits.
      2. (B) The interest credited to the DROP account and the employer contributions credited to the DROP account after the first five (5) years of participation may be forfeited.
      3. (C) The portion forfeited is eighty percent (80%) if terminated in the sixth year, sixty percent (60%) for the seventh year, forty percent (40%) for the eighth year, and twenty percent (20%) for the ninth year.
      4. (D) There is no longer a forfeiture of credits for participants who leave the DROP after August 1, 2003; and

   3. (3)

      1. (A) DROP payments for fire plans.
      2. (B) The DROP payments during the second five (5) years for fire plans that elect the ten-year DROP is seventy-five percent (75%) of the DROP payment in the first five (5) years.
      3. (C) This is described in Acts 2003, No. 1369.

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