Establishes a deferred retirement option plan for municipal police and fire employees.

The bill establishes a Deferred Retirement Option Plan (DROP) for eligible members of municipal police departments and fire departments/districts. Eligible members can defer receipt of retirement benefits while continuing employment for a period of 12 to 36 months. Benefits can be paid in lump sum, direct rollover, partial lump sum, or as a combination. If a member is approved for disability benefits during the DROP period, they can elect to receive disability benefits instead. The plan includes provisions for death benefits and continued employment after DROP termination.

Establishes a deferred retirement option plan for municipal police and fire employees.

The bill establishes a Deferred Retirement Option Plan (DROP) for eligible members of municipal police departments and fire departments/districts. Eligible members can defer receipt of retirement benefits while continuing employment for a period of 12 to 36 months. Benefits can be paid in lump sum, direct rollover, partial lump sum, or as a combination. If a member is approved for disability benefits during the DROP period, they can elect to receive disability benefits instead. The plan includes provisions for death benefits and continued employment after DROP termination.