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(a) During the period of a member's participation in the DROP, the member shall continue to receive the regular compensation attached to the rank occupied by the member at the time of enrollment in the Program, and the member shall have all of the rights, privileges, benefits and obligations of employment, including health benefits, attached to said rank, and shall be subject to all of the other terms and conditions of active employment in their respective rank and assignment. No member shall be eligible for a promotion during the time of their participation in the DROP.
(b) Notwithstanding the continued receipt by a participating member of the regular compensation and benefits attached to the rank and assignment which they occupy during their time in the DROP, no participating member shall receive service credit or compensation credit for retirement purposes pursuant to this Charter on account of their participation in the DROP. The member shall be subject to the employee contribution, as required by this Charter for all other active members of the Police Department, into the Retirement System. The City and County need not continue to make its required contributions for any DROP participant. Member contributions made during a participation in the DROP shall be deemed a contribution to the general assets of the Retirement System, and shall not be a part of the member's DROP Account.
(Added by Proposition B, Approved 2/5/2008)
(a) It is the intent of the voters that the DROP shall not jeopardize in any way the tax qualified status of the Retirement System under Section 401 of the Internal Revenue Code of 1986, as amended from time to time, including, but not limited to, Section 415 of the Code, as amended.
(b) The Board of Supervisors shall adopt ordinances and the Retirement Board shall adopt such rules as may be necessary to implement the DROP, regulate investment and distribution of the DROP contributions, establish forms and procedures for designating beneficiaries of the DROP Account, and all such other matters as may be necessary, in its discretion, to implement the Program no later than July 1, 2008 and to assure its tax-qualified character.
(Added by Proposition B, Approved 2/5/2008)
(a) The implementation of the DROP shall not result in any net increase in cost to the City. This determination shall take into account the costs associated with payroll, the expenditures associated with the recruitment and training of Police Officers, the costs of conducting academies for such recruits and trainees, the Field Training Officer costs, the retirement contributions made by members participating in the DROP, and the City, and the City's share of the return on the investment of the DROP funds, along with any other cost or savings elements related to the implementation of the Program. Notwithstanding this objective, the DROP shall be given a sufficient trial period to determine whether, as implemented, it is cost-neutral to the City as so defined.
(b) Not later than April 15, in the third year after the effective date of the DROP, a joint report prepared by the Controller of the City and the consulting actuary of the Retirement System documenting the net cost effect of the Program shall be submitted to the Board of Supervisors, and the Board shall determine by majority vote whether, on the basis of said report, the Program shall be renewed for an additional period of time as specified by the Board, but in no event beyond an additional three years.
(c) The net cost effect of the Program shall be similarly evaluated periodically thereafter, pursuant to a schedule established by ordinance adopted by the Board of Supervisors by majority vote; provided, however, that in no event may such an evaluation be conducted less often than every three years after the initial evaluation.
(d) If the Board of Supervisors determines not to renew the Program, those members then enrolled shall be permitted to complete their Program participation pursuant to the terms in effect when they entered into the Program.
(Added by Proposition B, Approved 2/5/2008)
(a) Upon the termination or conclusion of a member's participation in the DROP, the member shall be paid a lump sum equal to the balance in the member's DROP Account, or, pursuant to the member's instructions, that balance shall be paid as a direct rollover into a qualified retirement plan. The Retirement Board shall establish rules, and may develop such forms as may be appropriate, regarding distribution of the DROP Account proceeds, the rollover of such proceeds into a qualified retirement plan, and the time periods within such which distributions may be made.
(b) Upon the voluntary withdrawal of a member from the DROP, or the expiration of their participation period, the member shall be deemed to be retired on a service pension and shall then commence receiving directly the monthly service pension amount calculated pursuant to Section A8.903, including any cost of living adjustments to which the member would have been otherwise entitled during the time of their participation in the DROP, and shall, for all other purposes under this Charter and state law be deemed to be a retired member of the Police Department.
(Added by Proposition B, Approved 2/5/2008)