Wednesday, November 30, 2016

Another pension run

Hundreds of city employees continue to take advantage of the DROP pension program each year, according to a recent city analysis.
As of mid-November, 613 employees this year had received a combined $101.6 million in lump-sum DROP payments as they retired from the city. The average payment was $165,813.
Since the Deferred Retirement Option Plan was created in 1999, the city has paid $1.4 billion to thousands of city employees.
DROP allows employees to pick a retirement date up to four years in the future, then accumulate pension payments in an interest-bearing account while still earning their salary. They then collect a lump sum upon retirement. Their pensions are frozen at the level earned at the time they signed up for the program, which was meant to be cost-neutral to the city.

No comments: