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File #: Res 1834-2001    Version: * Name: Deferred Retirement Options Plan, Police Departments
Type: Resolution Status: Filed
Committee: Committee on Civil Service and Labor
On agenda: 4/17/2001
Enactment date: Law number:
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.
Sponsors: Peter F. Vallone, Martin Malave-Dilan, Helen M. Marshall, Stanley E. Michels, Mary Pinkett, Alphonse Stabile, June M. Eisland, Kenneth K. Fisher, Wendell Foster, Julia Harrison, Karen Koslowitz, Jerome X. O'Donovan, Morton Povman, Victor L. Robles, Angel Rodriguez
Council Member Sponsors: 15
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