Board clarifies DROP receipt rule after request for retroactive effective date

The board discussed a DROP (Deferred Retirement Option Program) application that requested a retroactive effective date. HR and finance reported the application was not received in time to permit a retroactive start; finance said deductions already taken precluded retroactivity and set the effective date prospectively (December 1). Counsel read the ordinance language, which states a DROP election "shall be effective on the first day of the calendar month, which is at least 15 business days after it is received by the board." Counsel recommended treating receipt by the administrator as satisfying the "received" requirement, and trustees agreed this interpretive approach is consistent with quarterly meeting operations.