Another year, another DROP debate.
At City Council's first session of 2011, Councilman Frank DiCicco introduced legislation that would permit workers to enroll and later opt out of the controversial Deferred Retirement Option Plan.
DiCicco and five of his colleagues are enrolled in the plan, which has become a political liability. DROP allows city workers to set a retirement date up to four years in advance. At that point, they start accruing pension payments in an interest-bearing account and collect those payments in a lump sum upon retirement, as well as their monthly pension checks.
A loophole in the DROP legislation allows elected officials to enroll in the program, run for re-election, "retire" for a day to collect the payout, and then get re-hired and sworn in for another term. This workaround has been widely criticized by city voters and good government groups. So far, three DROP enrollees on Council have announced plans to retire, but DiCicco, Councilman Frank Rizzo and Councilwoman Marian Tasco are expected to run for re-election.
DiCicco's bill would allow people to withdraw from the program if they had not yet retired. He acknowledged that he was trying to unravel himself from a sticky political situation, but said he was trying to resolve this issue in a way that makes sense.
"Certainly it's a real issue," he said. "If I opt out, I will hopefully get re-elected and be able to serve."
DiCicco has previously said he would donate his salary back to the city if re-elected, so as to avoid any appearance of "double-dipping."
Rizzo said he is prepared to give the DROP money back, but said he needed to further review the legislation. Tasco declined comment, saying she would wait for the hearings.
Of course, the problem with the proposal is that DROP was created in part to serve as a management tool so that officials could better plan for retirements. Bill Rubin, vice chairman of the pension board and the elected representative of District Council 33, which represents city blue-collar workers, said the DiCicco bill didn't make sense. He also said that the city could face legal action from DROP retirees who wanted to opt out and couldn't.
"This is an attempt by an individual who's trying to get out of this issue," Rubin said.
Proving that there is pressure on DiCicco, one of his likely opponents in the May primary election -- former Street administration official Joe Grace -- was in Council today.
Nutter has repeatedly said the city can't afford DROP. In August he released a study from Boston College researchers that said DROP is costing the city $22 million a year. He has sent legislation to Council that would abolish DROP, but Council has sought review of his study and has not scheduled hearings.
During Council's public comment period today, a former city worker turned up to slam DROP.
"No one should get four years pension and salary at the same time. I'm a tea party member and we will be voting against you guys who are taking the money," said Fred Fisher, 74, who retired from city service in 1998.