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Board advances DROP plan for safety employees to retain experienced staff
Summary
The board approved on first reading a Deferred Retirement Option Program (DROP) for safety employees that county staff and the actuary verified as cost‑neutral under the County Employees Retirement Law of 1937; unions and public‑safety associations supported the plan.
The Board of Supervisors on Jan. 13 took the first reading to adopt a Deferred Retirement Option Program (DROP) for safety employees covered by the County Employees Retirement Law of 1937. County staff, the county’s actuarial consultant and SDCERA reviewed parameters intended to make the DROP cost neutral for the retirement system.
Presenters summarized key features: participation limited to employees eligible for service retirement; a maximum participation period of three years; a notional account structure with 0% guaranteed interest credit; distribution limited to single lump sum or qualified rollover; employee contributions to continue with 75% deposited to the participant account and 25% to the system; employer contributions retained by the retirement system; and periodic review of cost neutrality every four years.
Representatives of law‑enforcement and probation unions told the board the program would help retain experienced staff and reduce recruitment and training costs. Supervisors voted to adopt the ordinance on first reading; a second reading was scheduled per the board’s ordinance process.
