HB532 Summary

• Reopens the Deferred Retirement Option Plan (DROP) for members of the Employees' Retirement System (ERS) and Teachers' Retirement System (TRS), removing the March 24, 2011 participation deadline.

• Allows Tier I members to participate in DROP if they have 25 years of creditable service, are at least 55 years old (or 52 for state police), and are eligible for service retirement.

• Allows Tier II members to participate in DROP if they have 25 years of creditable service, are at least 62 years old (or 56 for firefighters, law enforcement, corrections, or state police), and are eligible for service retirement.

• Permits DROP participation in 3-5 year increments with 80% of monthly retirement allowance paid into a DROP account; members receive lump-sum payment plus interest upon withdrawal, with options for rollover to eligible retirement plans.

• Takes effect immediately upon passage and gubernatorial approval.