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AUSTIN POLICE RETIREMENT SYSTEM
DEFERRED RETIREMENT OPTION PLAN
RETRO DROP POLICY AND PROCEDURE
A.
PURPOSE
The purpose of this policy and procedure is to provide a coordinated and fully documented
process for applicants to apply for the Retroactive Deferred Retirement Option Plan (“RETRO
DROP”) of the Austin Police Retirement System (“System”). In addition, this policy and procedure is
intended to provide those associated with the process (Members of the System, the System’s Board
of Trustees (“Board”), and the System’s administrative staff) with a detailed outline of the steps, time
frames, and rules regarding RETRO DROP and the processing of applications for participation in
RETRO DROP.
B.
GENERAL RULES
1.
In order to be eligible to elect RETRO DROP, a Member must, as of his or her RETRO
DROP benefit computation date:
(a)
Have completed at least 23 years of creditable service in the System, regardless of
age, excluding premembership military service credit.
2.
A Member’s RETRO DROP benefit computation date:
(a) Must be the last day of the month used for determining the Member’s monthly
retirement benefit; and
(b) May not precede the Member’s effective date of retirement by more than 36 months;
and
(c) Must be at least one month prior to the Member’s effective date of retirement.
3.
If a Member who terminates his or her employment with the City of Austin by voluntary or
involuntary means is eligible to retire, elects RETRO DROP, and receives his or her first
monthly annuity payment is subsequently re-hired as a police officer (or terminates
employment with the System and is subsequently re-hired by the System), the Member may
not again elect the RETRO DROP.
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4.
Because of the complexity in estimating the actuarial costs of RETRO DROP, the Act
governing the System provides that the Board may modify or eliminate the RETRO DROP by
the adoption of Board rules if the modification or elimination is approved by the Board’s