D.r.o.p

[FLState26]

How does the DROP Retirement plan exactly work?

Thanks

[Frank Booth]

There are variations, but here are the basics:

You sign paperwork that says you are retired. You begin collecting your retirement check in a DROP account. You manage your DROP account like you would a 457 or 401K, various investments,etc.

You continue to work while in the DROP program, usually for a specified maximum number of years. While working, you collect your pay and benefits as usual while also accumulating your pension money in your DROP account.

Some plans require you to work at least a year after you "retire". Some plans specify that you may not be promoted while in the DROP plan. Some specify that you can't receive raises while in the DROP plan. They can design the plan however they want.

[PhilipCal]

Drop

In Alabama, Frank's reply X2.