Member Resources
DROP
RETRO DROP
The retroactive deferred retirement option plan, referred to as RETRO DROP Option, is a one-time benefit paid at retirement with a reduced monthly retirement benefit. The DROP is a way to take a lump sum amount in retirement pay and still receive a monthly annuity. This DROP program reverts back to a date the member selects, which effectively retires them, using the last 36 months of employment wages from that date. Any future pay raises after the effective date will not compute in the DROP amount or the monthly annuity for the length of time they are received. If an officer is near retirement and recently received a pay raise, then to maximize the DROP option, the officer would need to work 36 months after this higher wage rate to compute it in the DROP and monthly annuity.
Certain selections of options and beneficiary designations other than a surviving spouse may have adverse consequences under the Internal Revenue Code of 1986, which may cause a reduction in the amount of benefit payable. You are urged to consult your attorney or tax advisor prior to a final selection of an option.
- RETRO DROP Application (24 KB)
- RETRO DROP Policy (27 KB)
- SPECIAL TAX NOTICE (56 KB)
Forward DROP
The forward deferred retirement option plan, referred to as Forward DROP Option, is a one-time benefit whereby active police officers can choose to retire, continue working for and drawing a paycheck from APD, while their retirement annuity is deferred into a DROP account on their behalf at the retirement system. To be eligible a member must qualify with a normal service retirement of 23 years at any age, excluding pre-membership military service credit and permissive service credit, as of the date of his or her election to participate in the Forward DROP. The maximum amount of service to be used in computation of the Forward DROP after normal service retirement of 23 years, excluding pre-membership service credit and permissive service credit is sixty (60) months.
A member’s election to participate in the Forward DROP is irrevocable. During the period that a member participates in Forward DROP, retirement contributions shall be made to the member’s Forward DROP account. The Forward DROP benefit balance will include the accumulated monthly benefits during Forward DROP participation with retiree COLA’S, multiplier increases, member contributions and a 5% simple interest calculation on December 31st for balances on deposit as of January 1st of the same calendar year. A member who elects Forward DROP receives a one-time lump sum benefit with a reduced monthly retirement benefit at the end of participation date.
If a member electing to participate in Forward DROP decides to continue employment covered by the Act governing the System after her or she has participated in Forward DROP for sixty (60) months, no further annuity deferrals or member contributions shall be deposited to the members Forward DROP account after that sixty month period. In that event, the member shall continue making all contributions required under the Act governing the System, however, these contributions will not be used in the pension benefit calculation and the member will not receive any further service credit for time worked.
Certain selections of options and beneficiary designations other than a surviving spouse may have adverse consequences under the Internal Revenue Code of 1986, which may cause a reduction in the amount of benefit payable. You are urged to consult your attorney or tax advisor prior to a final selection of an option.
- Forward DROP Application (29 KB)
- Forward DROP Policies and Procedures (52 KB)
- Forward DROP Distribution Form (13 KB)
