SB215 Summary

• Reestablishes the Deferred Retirement Option Plan (DROP) for members of the Teachers' Retirement System and Employees' Retirement System, allowing new participation after the April 1, 2011 enrollment deadline.

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

• Requires DROP participants to have at least 25 years of creditable service, be at least 55 years old (52 for state police), earn $100,000 or less annually, and be eligible for service retirement.

• Limits DROP participation to 3-5 years, with participants forfeiting retirement allowance portions if they voluntarily terminate within the first three years, though member contributions and attributable interest are protected.

• Becomes effective on the first day of the third month following passage and approval by the Governor.