Where and when did DROP plans originate?
DROP arrangements first started with several public safety plans in Louisiana during the mid-1980's to:
- Encourage fire personnel who could retire early (after 20 years of service) to continue working.
- Allow a partial lump sum distribution option in the Deerfield Beach Municipal Firefighters’ Pension Trust Fund plan.
- Provide the employer with a predictable turnover picture.
DROP plans now exist in Louisiana, Arkansas, Oklahoma, and Florida on the state and local level as well as locally in
Texas, Colorado, and California. Originally popular with fire plans, they now exist for teachers and general
public employees as well.