Senate Bill 2492 Summary

• Establishes a Deferred Retirement Option Program (DROP) for Public Employees' Retirement System members who have reached their normal retirement date (25 years of service or age 55, whichever is later).

• Allows eligible members to retire and continue working for 1-5 years while receiving regular salary, with retirement benefits deposited into a DROP account instead of being paid directly.

• Requires members to elect DROP participation within 12 months of reaching normal retirement date; participation is irrevocable once elected and members cannot terminate early without ending employment.

• Accumulates retirement benefits plus regular interest in the DROP account during the participation period, paid to the member as a lump sum or monthly installments upon completion of the DROP period, in addition to regular retirement allowance.

• Specifies that DROP participants are not active retirement system members, receive no creditable service for DROP period participation, and DROP salaries do not count toward retirement benefit calculations.