California Government Code ARTICLE 11.5 - Deferred Retirement Option Program

• Section 31770.
  This article shall be known and may be cited as the “Deferred Retirement Option Program.”(Added by Stats. 2003, Ch. 897, Sec. 1. Effective January 1,
• Section 31770.1.
  (a) The Deferred Retirement Option Program is hereby created to provide eligible members who elect to participate in the program access to a lump sum, or...
• Section 31770.2.
  Unless the context otherwise requires, the definitions contained in this section govern the construction of this article:(a) “DROP” or “program” means the Deferred Retirement Option Program...
• Section 31770.3.
  (a) This article, or selected provisions of this article, shall become effective in any county or district only when the county board of supervisors or governing...
• Section 31770.4.
  (a) The board shall, upon the request of, and before adoption of, the implementing ordinance by the county board of supervisors or governing board of the...
• Section 31770.5.
  (a) The implementing ordinance shall establish the eligibility requirements for participation in the program, subject to this section and the collective bargaining agreement. The ordinance shall...
• Section 31770.6.
  (a) Upon adoption of the implementing ordinance, the retirement system shall establish procedures for notifying members of their rights under the program.(b) Each member, before electing to...
• Section 31770.7.
  The right of a participant to benefits under the program is not subject to execution or any other process, except to the extent permitted by...
• Section 31770.8.
  The rights of a participant or his or her spouse under the program shall be subject to any applicable provisions of law or court orders...
• Section 31771.
  The provisions of this section to Section 31776.5, inclusive, shall be referred to collectively as the “forward DROP provisions.”(Added by Stats. 2003, Ch. 897, Sec....
• Section 31771.1.
  (a) Any member who elects to participate in the forward DROP provisions of the program shall make the election on a form prescribed and retained by...
• Section 31771.2.
  (a) On and after the election date, the participant shall cease to accrue retirement benefits under this chapter, and instead shall begin to accrue benefits under...
• Section 31771.3.
  The implementing ordinance shall specify, based on the results of the actuarial analysis and the requirement that the program be cost neutral, as described in...
• Section 31772.
  (a) A program account shall be established within the system for each participant. No system assets shall be separately segregated for any program account. A participant...
• Section 31772.1.
  The board shall provide a statement to the participant that displays the value or balance of the participant’s program account and summarizes any credits to...
• Section 31773.
  (a) If a participant dies during the program period, he or she shall be deemed to have died while eligible for retirement and his or her...
• Section 31774.
  If a participant becomes eligible for disability retirement due to an injury or illness occurring during the program period or pursuant to Section 31720.5, 31720.6,...
• Section 31775.
  Participation in the program shall be terminated, and the member will not have a right or claim to any continuing benefits under the program upon...
• Section 31776.
  Participation in the program shall be completed and the participant shall be entitled to benefits under the program upon the first occurrence of either of...
• Section 31776.1.
  Upon termination of employment and retirement for service under the system, a participant shall:(a) Receive a distribution, in the manner prescribed in Section 31776.3, of the...
• Section 31776.2.
  The participant’s monthly allowance shall be an amount equal to the monthly allowance the participant would have received if he or she had retired for...
• Section 31776.3.
  (a) Unless the implementing ordinance otherwise provides, the balance in the participant’s program account shall be distributed to the participant in a single lump-sum payment at...
• Section 31776.4.
  (a) A participant may designate a person or persons as beneficiaries of the balance in the participant’s program account at any time during the program period....
• Section 31776.5.
  The final compensation calculated under Section 31776.2 shall be the member’s final compensation for purposes of calculating any reciprocal benefits due the member from another...
• Section 31777.
  (a) The provisions of this section shall be referred to as the “actuarial equivalent DROP provisions.”(b) A member who retires for service on or after the operative...
• Section 31778.
  The provisions of this section through those of Section 31778.2, inclusive, shall be referred to collectively as the “backward DROP provisions.” A member who retires...
• Section 31778.1.
  A member who makes the election described in Section 31778 shall receive a one-time lump-sum payment upon retirement in an amount as calculated below.(a) A participant’s...
• Section 31778.2.
  (a) If a participant dies during the period from the deferred calculation date to the election date, he or she shall be deemed to have died...
• Section 31778.3.
  (a) A participant may designate a person or persons as beneficiaries of the participant’s program account at any time during the period from the deferred retirement...
• Section 31778.4.
  Upon termination of employment and retirement from the system, a member who has elected to participate in the program shall receive the member’s program payment,...
• Section 31779.
  (a) After the program has been in effect for a period of at least four years and not more than 10 years, as specified in the...
• Section 31779.1.
  The rights of a participant who has retired under the program, whose deferred retirement calculation date, or whose program period is in effect at the...
• Section 31779.2.
  If the program is modified pursuant to paragraph (2) of subdivision (b) of Section 31779, participants who entered, or who were eligible for, the program...
• Section 31779.3.
  As long as the program remains in effect, either as originally adopted or as modified pursuant to paragraph (2) of subdivision (b) of Section 31779,...

Last modified: October 22, 2018