Committee hears bill to add DROP option for OPERS law‑enforcement members

The House Public Insurance and Pensions Committee heard sponsor testimony on House Bill 73, which would require the Ohio Public Employees Retirement System law‑enforcement division (OPERS LE) to establish and administer a Deferred Retirement Option Plan, or DROP, for OPERS LE members.

Supporters said the program would let a retirement‑eligible officer lock and accumulate retirement payments in an account while continuing to work for up to eight years, and argued it would create parity with the Ohio State Highway Patrol Retirement System and the Ohio Police and Fire Retirement System. "The officer's retirement benefit is calculated and locked just as if they had retired on that date," Representative Hall said, describing how monthly payments are deposited into a DROP account while an officer remains in active service.

Proponents said DROP helps retain experienced officers, allows employers to plan for turnover by knowing individual drop windows, and lets officers build a retirement nest egg in their final years of employment. "During DROP participation, the officer and the officer's employer continue to contribute to PERS," Representative Kevin Miller said. He added sponsors expect participation rates similar to systems that already offer DROP and said the program is designed to be cost neutral to the retirement system.

Committee members asked technical and policy questions about how DROP differs from OPERS's existing PLOP (a lump‑sum payout option) and about OPERS's position. Representatives on the committee noted that PLOP provides a taxed lump sum and a reduced pension and agreed those differences matter to members who want to continue working while accumulating retirement benefits. Representative Bridal asked whether OPERS had taken a position; Representative Kevin Miller relayed that OPERS staff have expressed concern and pointed to PLOP as an existing alternative. "They are concerned with the bill. Their position is they already offer a program, it's called the PLOP program," he said.

Members also clarified program details raised by sponsors and speakers: DROP participation does not accrue additional service credit while the DROP account accumulates; officers and employers continue retirement contributions during participation; and the bill as presented would add DROP as an optional program rather than replace existing options.

No formal committee vote occurred; sponsors concluded their first hearing testimony and the committee closed the item for today. The committee recorded the item as a first hearing with no immediate action taken.