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Committee advances DROP extension for police command officers; staff say change saves city money
Summary
The Committee of the Whole advanced a plan amendment to let command officers remain in DROP up to 15 years (from 10), and forwarded the item to formal with a recommendation to approve.
The Committee of the Whole voted to forward a plan amendment allowing members of the Detroit Police Command Officers Association (DPCOA) to extend participation in the department’s DROP (Deferred Retirement Option Program) from 10 years to 15 years, matching earlier changes negotiated with the other police unions. The item was sent to formal with a recommendation to approve.
John Magley, representing the labor-relations division, explained DROP for council members: when an officer reaches normal retirement age they may elect DROP and continue to work for the city while their pension benefit is frozen. Under current practice the benefit is paid into a protected account (Voya) at 75% of the pension amount; Magley said the three police unions previously negotiated a change to 85% that is pending bankruptcy-court review. Magley said extending the allowable DROP participation from 10 to 15 years is conditioned on the police chief’s approval after the 10th year.
Magley told the committee that an actuary’s cost study — a required state-law step before changing pension plan terms — shows the change would save the city approximately $40,000 per year. He also said the three unions combined counted about 562 officers in these represented ranks across the unions (DPOA, DPLSA and DPCOA), and that DPCOA is the smallest of the three. Members asked whether officers in DROP still appear on the payroll (they do) and whether the extension affects accruals (the benefit is frozen when an officer enters DROP).
A motion to send line item 8.13 to formal with a recommendation to approve was made and advanced by unanimous consent.
Why it matters: The DROP program affects long-term staffing, retention and pension costs. Council members and labor negotiators framed the amendment as parity among bargaining units and a retention tool for experienced officers; staff said actuarial analysis supports small net savings.
Next steps: If council approves the plan amendment at formal session, staff will submit it to the bankruptcy court as part of the city’s ongoing restructuring process where some pension changes require court approval.
