Wednesday, March 4, 2015

Over 100 City Workers Applied for DROP yesterday

Wow. A total of 106 city workers applied for DROP yesterday, one day after Mayor Nutter called for the retirement plan to be abolished.

Over 100 City Workers Applied for DROP yesterday

Wow. A total of 106 city workers applied for DROP yesterday, one day after Mayor Nutter called for the retirement plan to be abolished.

And as of 3 p.m. today 84 workers had applied. Of course, applying doesn't mean you have to permanantly enter the program. There's an approval process workers must go through.

For context: a total of 945 workers enrolled in DROP in 2009 and 521 enrolled in 2008. So these kind of application numbers are well above average.

Mayor Nutter this week called on Council to abolish DROP - the Deferred Retirement Option Plan - after a study from researchers at Boston College said that the program had cost the city $258 million since its inception in 1999.

Under DROP, city workers set a retirement date up to four years in advance. At that point, their pension benefit is frozen and they start accruing pension payments in an interest-bearing account. Workers receive those payments in a lump sum when they retire, in addition to their full city pension.


 

About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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