Ohio Police and Fire Pension Fund - Deferred Retirement Option Plans - Impact of Irrevocable Payroll Deduction on DROP.


Published: 2003-04-06

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(A) For the purchase of service credit done through an irrevocable pre-tax payroll deduction agreement that provides for the purchase of service credit beyond the member's effective date and which was entered into before the DROP participant's effective date, the member shall not be permitted to terminate such payroll deduction, but the terms of this rule shall apply.

(B) For those DROP participants who meet the criteria of paragraph (A) of this rule, OP&F shall calculate the monthly DROP benefit under section 742.442 of the Revised Code based on the service credit actually purchased under such payroll deduction plan as of the member's effective date, subject to the limited recalculation done pursuant to paragraph (C) of this rule.

(C) For those DROP participants who meet the criteria of paragraph (A) of this rule and who complete the irrevocable pre-tax payroll deduction agreement, OP&F shall recalculate the monthly DROP benefit under section 742.442 of the Revised Code based on the service credit actually purchased under such payroll deduction plan and OP&F shall credit that increased benefit for the DROP participant's benefit, beginning the month following the month in which such purchase of service credit was completed; provided, however, that this shall not result in the recalculation of DROP benefits already calculated under section 742.442 of the Revised Code.

(D) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).