D a l l a s P o l i c e a n d F i r e P e n s i o n S y s t e m  
 

 

(For the schedule of meetings to join DROP and how to register, click HERE .)

Suspension of Enrollment into DROP

(Jan. 12, 2015) The court decision against the Dallas Police and Fire Pension System (DPFP) in regard to the lawsuit with respect to the 2014 Plan amendment election also impacts new enrollment in DROP. Because DROP has become an actuarial loss to the pension fund and the fact that we now cannot implement the Plan changes intended to remedy to this issue, Section 6.14(k) of the Plan requires that no new Members or Pensioners (who were not previously deferring monthly pension to DROP) may enroll in DROP. The Board chose not to terminate new DROP enrollment at this time because of the pending appeals, but decided to only suspend new enrollment in DROP pending the final outcome of the appeals so that enrollment may again be open if/when DPFP wins the final appeal.

DELAY IN BEGINNING THE SUSPENSION OF DROP

In order to give Active Members who currently meet the eligibility requirements to enroll in DROP an opportunity to get benefit and DROP accrual information and to consult with a financial advisor before making a final decision, the Board chose to delay the suspension until April 1, 2015. Here’s how it will work:

Who is Eligible to Enroll in DROP during this delay period?

Any Active Member eligible to retire as of March 31, 2015, may enroll in DROP by that date and remain on active duty. Eligibility to retire is:
• Age 50 with at least 5 years of pension service (Normal Retirement)
• Age 45 with at least 5 years of pension service (Early Retirement – reduced benefit)
• At any age with at least 20 years of pension service (20 and Out – reduced retirement)

When Can My Enrollment In DROP Be Effective?

Your may choose to enroll in DROP effective either on February 1, March 1 or April 1, 2015, as long as you are eligible on the date you select.

How Do I Enroll in DROP?

Due to the expected interest in joining DROP during this period, individual meetings with Members is not feasible. The Benefits Team will hold weekly group meetings beginning January 20 for Active Members interested in joining DROP to explain DROP and the enrollment process. DPFP staff will prepare benefit estimates and DROP projections for each Member attending the sessions. DROP applications may be completed and submitted at the meeting or returned to the Pension Office in time for processing and submission to the Board for approval. Prior registration for the sessions is required.

(For the schedule of meetings to join DROP and how to register, click HERE .)

Should I Enroll in DROP Now?

Active Members have a window through March to enroll in DROP before DROP enrollment is suspended pending the final outcome of the appeal of the court’s decision on the 2014 Plan amendment election. Because the Board has granted this opportunity to enter DROP before enrollment is suspended does NOT mean the Board is encouraging you to do so. This is a personal decision and may not be right for everyone. The natural tendency of many Members otherwise eligible may be to enroll now to preserve their place in DROP. However, a decision to enroll now may not be in the Active Member’s best financial interests in the long run. Members are strongly encouraged to seek advice from a qualified financial advisor before making a final decision.

Once an Active member enrolls in DROP, participation in DROP is irrevocable, except as expressly authorized in a Plan amendment election.

There is no guarantee that DROP will be reopened in the future; nor is there a guarantee that, if DROP is reopened, members who enroll in DROP now will be able to later revoke this election.

(View schedule of DROP enrollment meetings HERE)

 
 
 

Dallas Police & Fire Pension System
4100 Harry Hines Boulevard, Ste. 100
Dallas, Texas 75219
214-638-3863
1-800-638-3861

© 2014 Dallas Police and Fire Pension System

Dallas Website Design Company - Chapman Marketing

DPFP on Facebook DPFP on Twitter