Loophole means future elected city officials can’t use DROP

Philadelphia City Council has approved a bill that would close a loophole in the city’s early retirement incentive plan known as DROP or the Philadelphia Deferred Retirement Option program.

Philadelphia City Council has approved a bill that would close a loophole in the city’s early retirement incentive plan known as DROP or the Philadelphia Deferred Retirement Option program.

WHYY’s Tom MacDonald reports the move would keep future elected officials from using the plan. [audio:100318TMDROP.mp3]

The bill comes as the result of a state rule which orders the elimination of early retirement initiatives to elected officials.

Councilman Bill Green is an outspoken supporter of closing the loophole. He’s happy to see the legislation approved.

Green:
I think we are doing really good work here, and it’s a shame to have all that good work – the prevention of increasing property taxes last year and our work on the budget this year – it’s important to have that issue off the table so that perhaps people believe we are working on other things besides our retirement.

Current members of council remain eligible for DROP and several are enrolled.

One of the program’s greatest flaws is this: conceivably a public official could retire for a day, receive a six-figure payout, and then return to the job upon re-election.