Administration September 16, 2011
Philly City Council Overrides Mayor’s Veto of DROP Bill
September 16, 2011 (PLANSPONSOR.com) – The Philadelphia City Council unanimously voted to override Mayor Michael Nutter’s veto of a bill that would preserve the controversial Deferred Retirement Option Plan (DROP) while attempting to reduce its costs, reports the Philadelphia Daily News.
Reported by Tara Cantore
Nutter pushed the Council to end DROP, arguing the city cannot afford the perk, which is estimated to cost $100 million since 1999. However, the Council, which has seven members who are current or past DROP enrollees, chose to modify DROP in the spring.
The article states that the legislation would delay entry into DROP for non-uniformed workers and would lower the earned interest rate for future participants. The Council’s consultant predicted the changes would carry a one-time cost of $15 million to $20 million.
Nutter hopes to find more support for ending DROP in 2012, when the Council will have at least six new members.