Click Image to view readable PDF

The Philadelphia City Solicitor says elected officials can participate in the controversial Deferred Retirement Option Program. Shelly Smith says the DROP does not distinguish between city workers and elected officials.  This means there is nothing legally wrong with Philadelphia City Council members enrolling in the retirement program.

Elected officials who are in DROP benefit more than regular city employees because they can be re-elected. When a city worker retires, he or she does not return. So when a city council member wins re-election, he or she can count this as officially retiring from the City. If enrolled in DROP the official can collect a bonus payment (worth four years of pension payments) and then return to work.  Now the council person will earn a salary and still get monthly pension checks as if they were retired.

City Solicitor Smith reviewed the DROP program rules at the request of Committee of Seventy President Zach Stalberg who believes allowing elected officials to retire for-a-day, collect a big pension check, then return to work belies common sense.

It’s Our City caught up with Stalberg this afternoon to get his reaction. “This underscores the need for a legislative solution. This City Council needs to deal with the Mayors legislative plan to bar elected officials from participating in DROP.”  Stalberg says, Councilman Jim Kenney has introduced a bill that would do just that but had his doubts on whether Council would act on it soon. Currently six members of the Philadelphia City Council are enrolled in DROP.

It’s hard to say whether allowing elected officials to participate in DROP costs the city extra money. But one thing is clear, that many city residents can’t stand the thought of someone “retiring for a day. ” The majority of the 1700 participants at the four budget workshops held in February thought it was wrong for elected officials to be in DROP.

Here’s an excerpt from the Final Report on the workshops.

ENDING DROP – 4 points

Most common bucket: Low Hanging Fruit

Most common themes: One of the most discussed items. Fierce public outrage over elected and appointed officials being eligible for this. Strong opposition to people retiring for a short time, then returning to work. Support for what is seen as the original purpose: Helping the retirement security of people who’ve done physical or dangerous work for the city, while clearing the way for younger, cheaper workers.

Key pros: It’s a good idea gone bad, being abused by the pols. Cutting it
would be a way to save money that doesn’t involve anyone losing jobs.

Key cons: Still a useful program for cops, firefighters etc.

Councilman Frank DiCicco who is enrolled in DROP has come up with an innovative way to get the DROP payment and if reelected to still return to work. He says he’ll work for free.

Ok, So should we keep DROP? Keep DROP only for non-elected city workers? Leave everything the way it is?

Related links:

A Good DROP 101 explainer can be found at It’s Our Money

City Council’s chief financial officer Charles McPherson offers a defense for elected officials in DROP

hat tip: DN Clout blog