NY A10538

Establishes a Deferred Retirement Option Plan (DROP) for New York State Police officers who have completed 20 years of creditable service, allowing them to defer retirement benefits while continuing employment.

DROP participants may elect participation periods between 12 and 60 months, with deferred monthly retirement benefits held by the retirement system and accruing interest at 1.5% annually.

Upon completion of the DROP period, participants receive their total deferred benefits plus interest in one of three methods: lump sum, direct rollover to another qualified plan, or partial lump sum with rollover option.

Participants who die or become disabled during the DROP period are treated as if the DROP election did not exist, with death or disability benefits calculated using salary and service credited during the DROP period.

If a participant fails to complete their elected DROP period or remains employed after DROP termination, they forfeit all DROP benefits and are treated as if no DROP election occurred; estimated past service cost averages approximately 100% of salary per member.