Council advances fire department DROP proposal to second reading after actuarial review finds program revenue-positive

Council heard an extended presentation on a proposed Deferred Retirement Option Plan (DROP) for the Saint Albans Fire Department and voted to move the ordinance to second reading.

Fire-department presenters explained the program mechanics: eligible employees may enter retirement but defer pension payout for up to five years while continuing to work at salary; deferred pension amounts remain in the pension fund and are paid out later according to chosen options. Presenters said the city commissioned an actuarial study that projected the DROP program would be revenue-positive for the pension fund (the actuary'reported positive estimates in the transcript) and said secondary benefits include retaining experienced firefighters for additional years.

Council members raised operational and fiscal questions: how deferred payouts are handled, whether employees retain salary while deferring, effects on accruals and payout timing, and whether the plan reduces unfunded liability over the long term. Fire department representatives explained that deferred amounts accrue in the fund and that the plan offers options (lump sum or rollover to retirement accounts) once the deferral period ends.

The council moved the DROP ordinance to second reading so the public may conclude a scheduled hearing and council may consider the ordinance again with any public comment and final actuarial details.

Next steps: the DROP ordinance will return for second reading and a public hearing; council and pension staff will publish actuarial information for public review.