The Board of Pensions and Retirement is pleased to advise you that the Mayor signed City Council Ordinance no.990288A. This bill creates a Deferred Retirement Option Plan (DROP) for employees who have reached the normal retirement age of their pension plan and have ten years of credited pension service.
The DROP give you the option of placing your monthly retirement benefit in a deferred retirement account and continue to be employed with the City of Philadelphia for up to four (4) additional years. What does this mean to you? It allows you to place your current monthly retirement benefit that you are entitled to as of the date you elect to become a DROP participant into a tax-deferred, interest bearing account (4.5%), with interest compounded monthly.
Your deferred retirement benefit continues to accrue on a monthly basis until you formally retire from the City of Philadelphia. Upon formal retirement you will receive your accumulated lump sum. Once again, you are reminded that you must retire from City employment within four (4) years of your DROP enrollment date.
Once you become enrolled in DROP, you will no longer earn any additional service credit toward your pension. Your monthly retirement benefit is determined on the day you elect to enter DROP. In fact, pension contributions will no longer be deducted from your salary.
As long as you remain employed with the City of Philadelphia, you will continue to earn pay increases, vacation time and sick leave. The only benefit that will not change is your monthly service retirement benefit. This benefit is fixed on the date you enroll in DROP.
See DROP FAQ for more details.
If you make application for DROP you will receive a confirmation letter within thirty days. The Board of Pensions will then schedule your DROP INTERVIEW. PLEASE BE PATIENT, WE EXPECT SEVERAL HUNDRED APPLICATIONS.
Finally, if you have a need for additional information, please call 215-496-7400.
The City of Philadelphia is an Equal Opportunity employer and does not permit discrimination based on race, ethnicity, color, sex, sexual orientation, gender identity, religion, national origin, ancestry, age, disability, marital status, source of income, familial status, genetic information or domestic or sexual violence victim status. If you believe you were discriminated against, call the Philadelphia Commission on Human Relations at 215-686-4670 or send an email to email@example.com. For more information go to: http://www.phila.gov/humanrelations