HB180 Summary

• Reestablishes the Deferred Retirement Option Plan (DROP) for members of the Teachers' Retirement System and Employees' Retirement System, reversing restrictions imposed by Act 2011-27.

• Removes limits on interest paid to DROP accounts, allowing interest to be calculated at the same rate as active member accounts.

• Permits eligible employees (25+ years creditable service, age 55+, eligible for retirement, annual salary $100,000 or less) to participate in DROP for 3-5 year periods, with employees able to participate only once in their career.

• Specifies that voluntary termination within the first three years results in forfeiture of the retirement allowance portion of the DROP account, but member contributions and accrued interest are protected; no forfeiture applies for involuntary dismissal, disability, or death.

• Takes effect on the first day of the third month following passage and Governor approval.