La. Admin. Code tit. 58 § I-2721

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-2721 - Participation in New DROP

A. A member will be eligible for DROP as soon as he is eligible for retirement.

B. DROP participation will be limited to three years.

C. The member must enter DROP within a "window" of time. If he does not enter DROP within the window, he loses his right to enter DROP.

D. The "window" begins 60 calendar days after his earliest date of eligibility for retirement and continues for three years and 60 days from the date of eligibility. In effect, the window sets an ending date for DROP participation. Eligibility to participate in DROP must end no later than three years and 60 days after the first retirement eligibility date. A member may enter DROP on the date he is eligible for regular retirement, without waiting 60 days to start DROP; however, he may only participate in DROP for three years.

E. If a member waits to enter DROP at some point after eligibility, the length of time he may participate in DROP is reduced. For example, if he enters DROP one year after first becoming eligible, he can stay in DROP for two years and 60 days.

F. The participant may not end DROP prior to the stated ending date unless he terminates employment. This is a change from the old DROP. Also, the stated participation period cannot be extended.

G. The participant may elect to continue working after DROP participation. The calculation of the retirement benefit will be the same as in the old DROP program, except for the conversion of unused leave.

H. The amount of unused sick and annual leave at the date of termination can be converted to retirement credit, including the leave that was earned during the DROP participation period. If the participant terminates at the end of DROP or works less than three years after DROP, the benefit based on the leave conversion will be calculated using the final average compensation at the beginning of DROP participation. If the participant works more than three years after DROP participation, the benefit based on the leave conversion will be calculated using the final average compensation for the period of employment after DROP.

I. The participant may choose to receive the actuarially reduced lump sum payment for unused leave in lieu of converting it to retirement credit.

J. Anyone who elects to participate in DROP cannot elect the initial benefit option (lump sum provision).

La. Admin. Code tit. 58, § I-2721

Promulgated by the Department of Treasury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:515.