Res. No. 1834 Title Resolution requesting that the New York State Legislature consider amending applicable State law to allow municipalities to create a Deferred Retirement Options Plan for members of their respective police departments. Body By The Speaker (Council Member Vallone) and Council Members Malave-Dilan, Marshall, Michels, Pinkett and Stabile; also Council Members Eisland, Fisher, Foster, Harrison, Koslowitz, O'Donovan, Povman, Robles and Rodriguez Whereas, A Deferred Retirement Option Plan ("DROP") would help municipalities retain veteran officers because it allows eligible police officers to "retire" while actually remaining on the job; and Whereas, Under a DROP program, when an officer finally separates from the police department, the officer's pension in based on the date he or she entered the DROP program; and Whereas, By allowing municipalities to retain seasoned veteran police officers, a DROP program saves in training costs associated with hiring new recruits; and Whereas, While the "retired" officer in a DROP program remains on the job, the municipality would no longer be obligated to pay into the officer's pension; and Whereas, An officer who enters a DROP program benefits by having his or her pension payment accrued in the Pension Fund and receives a lump sum payment upon final departure from the police department, and since the officer is officially "retired," he/she receives an annual Defined Benefit payment which increases the officer's annual salary; and Whereas, Reportedly, Many municipalities have implemented DROP programs that are near cost-neutral and in some cases have actually saved the money; now, therefore, be it Resolved, That the Council of the City of New York requests that the New York State Legislature consider amending applicable State law to allow municipalities to create a Deferred Retirement Options Plan for members of their respective police departments. LS # 4074 03/22/01