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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
San Francisco County Grand Jury
• 2008-2009
4. Drop (Deferred Retirement Option Program)
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Recommendations 1
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R4Page 16DROP (Deferred Retirement Option Program) Officers participating in DROP would continue to receive their regular pay and benefits. DROP participants would begin accumulating their regular retirement payments, frozen at the level that the officer had earned upon entry into DROP. These payments would be placed in a tax deferred DROP account maintained by the City’s Retirement system. At the end of the DROP period, officers would begin receiving their regular monthly retirement payment, as well as their retirement benefits that had accumulated in their DROP account, in a lump sum. An officer can earn a salary and a retirement pension at the same time from the same employer, a practice some call “double dipping”. For example, a 55-year-old police officer who enters the program while earning $100,000 annually could receive a lump sum of $225,000 after three years. The Proposition provides that the City should not incur any overall cost increase due to the creation and operation of the DROP. This Charter amendment requires periodic evaluation by the City of the costs of the program to ensure its cost neutrality. PENSIONS, BEYOND OUR ABILITY TO PAY, A REPORT BY THE 2008-2009 SAN FRANCISCO CIVIL GRAND JURY