City of Philadelphia - File #: 100688

• File #: 100688
• Version: 0
• Type: Resolution
• Status: ADOPTED
• File created: 10/21/2010
• In control: CITY COUNCIL
• Final action: 10/21/2010
• Title: Expressing Council's intent that, in the event Council enacts legislation revising or curtailing the Deferred Retirement Option Plan ("DROP"), any such legislation will provide all City employees who are eligible to enroll in the DROP by virtue of their age and years of service with a "window of opportunity" to enroll before any changes affecting their eligibility take effect; encouraging those employees who have submitted a Preliminary Application to enroll in the DROP but have not yet finalized their application to reconsider their decision carefully in light of Council's commitment to provide them with an opportunity to apply and enroll in the DROP at a future date; and requesting the Board of Pensions to advise DROP-eligible employees of Council's intention.
• Sponsors: Council President Verna, Councilmember Tasco, Councilmember Clarke, Councilmember O'Neill, Councilmember Rizzo, Councilmember Sanchez, Councilmember Greenlee, Councilmember Reynolds Brown, Councilmember Green, Councilmember Kelly, Councilmember Miller, Councilmember Jones, Councilmember Krajewski
• Indexes: BOARD OF PENSIONS AND RETIREMENT, DEFERRED RETIREMENT OPTION PLAN (DROP)

Date	Ver.	Action By	Action	Result	Tally
10/21/2010	0	CITY COUNCIL	Introduced	Pass
10/21/2010	0	CITY COUNCIL	READ
10/21/2010	0	CITY COUNCIL	ADOPTED

Title
Expressing Council's intent that, in the event Council enacts legislation revising or curtailing the Deferred Retirement Option Plan ("DROP"), any such legislation will provide all City employees who are eligible to enroll in the DROP by virtue of their age and years of service with a "window of opportunity" to enroll before any changes affecting their eligibility take effect; encouraging those employees who have submitted a Preliminary Application to enroll in the DROP but have not yet finalized their application to reconsider their decision carefully in light of Council's commitment to provide them with an opportunity to apply and enroll in the DROP at a future date; and requesting the Board of Pensions to advise DROP-eligible employees of Council's intention.
Body
WHEREAS, On August 3, 2010, the Mayor announced at a well-publicized press conference that he would be sending legislation to City Council to end Philadelphia's Deferred Retirement Option Plan ("DROP"); and

WHEREAS, The first step in applying for the DROP requires that an employee submit an Initial Application to the Board of Pensions; and

WHEREAS, Immediately after the Mayor's announcement, the Board of Pensions experienced a sharp spike in the number of Initial Applications received, clearly evidencing a concern among City employees that the DROP faced impending extinction. On just the five business days immediately following the Mayor's announcement, the Board of Pensions received a total of 472 applications, as compared to the entire month of August 2009, when 82 applications were submitted. From August 4 through October 12, 2010, the Board of Pensions has received 1,188 Preliminary Applications, and other employees have also requested forms; and

WHEREAS, The decision to enter the DROP is a complicated one that, if made hastily or prematurely in an employee's career, can cause great harm to an employee's financial security. There are advantages and disadvantages to entering th...