Pompano Beach General Employees Retirement System

Pompano Beach General Employees Retirement System

board membership meeting

Directory

home
mission statement
board of trustees
administration
history of the plan
chairman's message
informational reports
plan news
our location
plan provisions
plan documents
meeting agendas
meeting schedule
benefit calculator
forms
links
search site
contact us

 

Under Florida law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public-records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.


Our Slogan

Plan Provisions - Deferred Retirement Option Plan (D.R.O.P.)

   

DEFERRED RETIREMENT OPTION PLAN (DROP)

Once you have attained 20 years of Credited Service, and are at least age 55, or attained 3 years of Credited Service and are at least age 62, you are eligible to enter the Deferred Retirement Option Plan (DROP).

DROP Provisions

Your election to enter the DROP is irrevocable and cannot later be changed. DROP participants are not entitled to pre-retirement death or disability benefits from the Plan. (see sections below) Once you enter DROP you will no longer contribute to the Plan.

If you have at least 20 years of Credited Service, you may participate in the DROP for a maximum of eight (8) years (96 months). If you have less than 20 years of Credited Service, you may participate in the DROP for a maximum of five (5) years (60 months). You must agree to terminate your employment (i.e. separate from service) no later than the end of this period. You may separate from service at any time prior to the end of this period.

DROP Account

Your DROP Account will be credited with the monthly benefit you would have received had you retired from service on the date you enter the DROP, taking into consideration any optional form of benefit selected, as explained in the Retirement Benefits section. Your DROP Account will be credited with interest at the same rate as the investment earnings assumption for the Plan, paid through your employment termination date.

Exiting DROP

Upon termination of employment, you will receive a distribution of your accumulated DROP Account balance and will begin receiving a monthly benefit equal to the monthly benefit you would have received had you retired from service on the date you entered the DROP, taking into consideration any optional form of benefit selected.

DROP Participants wishing to exit the DROP must notify the Pension Office of their employment termination date, and therefore their intent to exit the DROP, at least seven (7) business days prior to the next scheduled monthly Board meeting date in order to have their DROP exit approved at that meeting. DROP exit notifications received after the cutoff date will be placed on the following monthís meeting agenda and may delay the issuance of the participantís DROP distribution and the start of their monthly retirement benefit payments.

Cost of Living Adjustments

Your monthly benefit will not be eligible for cost of living adjustments while you are participating in DROP. Upon exiting the DROP, your monthly benefit will qualify for a cost of living adjustment as described in detail in the Cost of Living Adjustment section of this document. Your DROP Exit Date will be treated as your Retirement Date for COLA purposes. Please see Cost of Living Adjustment section above.

FILING FOR DROP

The following procedures are provided for your information, to assist you as you prepare for entering the DROP.

  1. Advise your supervisor/department head in writing of your plans to enter the DROP at least 30 days prior to the date you wish to enter the DROP.
  2. Contact the Executive Director to set up an appointment to complete an application for the DROP program and designate the Beneficiary of your DROP account.
  3. You will have to provide the Executive Director with certified copies of your birth certificate, marriage certificate, and your Beneficiaryís birth certificate. (Last two items are required if you elect to receive an Optional Form of Benefit Payment other than Life Annuity).
  4. The Executive Director will advise you when the final benefit calculation has been completed so that you can make a benefit selection. Your selected Beneficiary and one trustee should be present when the benefit option is selected.
  5. The Board of Trustees then approves your DROP entry at its next monthly board meeting.

< - Retirement Benefits -- Disability Benefits - >