Entering DROP

Entering DROP

Why do I have to sign the various releases, waivers and covenants that are contained in the DROP election application? What happens if I refuse to sign them?

The various releases, waivers and covenants are designed to protect you, LAFPP and the City. We have done our best to disclose to you all of the advantages, as well as disadvantages, of DROP. You must sign all required forms in order to participate in DROP.

Can the provisions of DROP be changed?

Yes, but if you are already in DROP, you will not be affected by any changes to the DROP ordinance.

What is the effective date of my DROP participation?

The same date you elect to make your service pension effective. You must be on active duty status on your DROP entry date.

What constitutes “active duty status” for purposes of entering DROP?

For purposes of entering DROP, active duty status includes light-duty status, but excludes sick, vacation, injured on duty, administrative leave and all other types of non-working status. (See charts on page 5 of DROP Handbook.) If you are on a non-working status, your intended effective date of DROP participation will be adjusted to reflect the date you return to active duty/working status. The City Administrative Officer has determined which payroll codes constitute active duty status for purposes of this provision.

What if I want to revoke my DROP election?

To revoke your entry into DROP, you must submit a DROP Revocation Notice no later than the day prior to your DROP entry effective date: The Notice may be submitted in-person, during regular business hours, at 701 E. 3rd Street, Suite 200, Los Angeles, CA 90013, by fax directed to (213) 628-7716, or by email sent to [email protected]. It must be received before the close of business at 4:30 p.m., or if faxed or emailed, by 11:59 p.m. The effective date of revocation is established only upon receipt of the Notice prior to the DROP entry effective date and upon signature thereupon by LAFPP administrative staff. If you do not revoke your election before your DROP entry effective date, your decision to enter DROP and to terminate sworn employment at the end of the DROP period will be irrevocable. Consult with outside advisors (e.g., your own attorney, accountant, tax advisor or other professional) prior to making your decision to enter DROP.

When do I choose a beneficiary for my DROP account?

We encourage you to designate your beneficiaries for your DROP account when you enter DROP. You may change your beneficiary designation at any time prior to exiting DROP. As your marital status or family circumstances change, it is advisable that you review your designations to ensure that the person(s) named as your DROP beneficiary(ies) is/ are the person(s) you want named. Overlooking this matter may have very serious and undesirable consequences.

Note: Your choice of a beneficiary cannot defeat any community property interest awarded to a former spouse in a dissolution.

Can I receive a refund of my pension contributions?

No. Once you have enrolled in DROP, you are no longer eligible for a refund of pension contributions.