DROP RETIREMENT

New Orleans City Code ch. 114, art. III, div. 6

in effect

New Orleans City Code § 114-145 DROP election.

Sec. 114-145. - DROP election. A. Members who commenced employment after January 1, 2018 and members with less than ten years of active service as of January 1, 2018 may elect to participate in DROP in accordance with subsection B herein, but the DROP period for each such member shall not exceed three years measured from the date on which his DROP period commenced. B. Subject to the limitation in subsection A herein, a member who is otherwise eligible for normal retirement in accordance with section 114-125 hereof may elect to participate in DROP. Any such election shall be made on forms prescribed by the trustees and shall be subject to the following terms and conditions: 1. Such member shall designate the date on which his DROP period will commence, which shall not be earlier than 30 days after the date on which his DROP election is received and accepted by the trustees. 2. Such member shall designate his DROP period, which shall not exceed five years, or three years for those employees in the groups designated in subsection A herein, measured from the date on which his DROP period commenced and which period shall terminate earlier in the event a member separates from service before the end of the designated period. 3. Such member shall designate the form in which his retirement allowance shall be paid in accordance with section 114-131 hereof. 4. Unless otherwise permitted by the trustees, any such member may elect to participate in DROP only once; a member may revoke his DROP election or reduce the duration of his DROP period at any time prior to the date on which he receives a distribution of all or a portion of the amount credited to his DROP account, at which time such member's election shall be deemed irrevocable. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17)

New Orleans City Code § 114-146 DROP retirement.

Sec. 114-146. - DROP retirement. Upon the effective date of a member's DROP election: A. He shall cease to be an active member of the system. B. The amount of his retirement allowance shall be determined, based upon such member's pensionable compensation and creditable service as of his retirement date, but excluding any service reciprocally recognized under R.S. 11:142. C. During such member's DROP period, his DROP account shall be credited with the amount of his monthly retirement allowance determined in accordance with subsection B hereof and interest at the rate determined in accordance with section 114-147 hereof. D. At the end of such member's DROP period, the balance then credited to his DROP account shall be distributed in accordance with section 114-148 hereof. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-147 DROP interest.

Sec. 114-147. - DROP interest. A member's DROP account shall be credited with interest at the rate determined annually by the trustees. Such interest shall be credited annually as of the last day of each calendar year. Interest shall be credited hereunder for the period commencing as of the date on which a member's DROP account is established and ending as of the earlier of (A) the end of such member's DROP period, or (B) such member's separation date. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-148 Distributions from DROP account.

Sec. 114-148. - Distributions from DROP account. A. When a member separates from service, whether during his DROP period, at the conclusion thereof or thereafter, the balance then credited to his DROP account shall be distributed to him in the form of a (1) single-sum payment, (2) substantially equal installment payments over a period designated by such member, not in excess of 119 monthly payments, or (3) in such other manner as then may be permitted by the trustees. His monthly retirement allowance shall thereafter be paid to him. B. If a member becomes disabled during his DROP period and he separates from service on account of such disability, he shall receive the balance then credited to his DROP account in the form of a single-sum payment or in such other manner as then may be permitted by the trustees. His retirement allowance shall thereafter be paid to him. C. If a member dies during his DROP period, his beneficiary shall receive the amount then credited to his DROP account in the form of a single-sum payment, and the member's annuitant, if any, shall receive any survivor benefit payable in accordance with the terms of the member's retirement allowance in effect during the DROP period. D. If a member dies during an installment payment period, the remaining payments shall be made to his beneficiary, at the time or times such amounts would have been paid to the deceased member, and the member's annuitant, if any, shall receive any survivor benefit payable in accordance with the terms of the member's retirement allowance in effect during the DROP period. E. Any single-sum payment hereunder shall be made as soon as practicable following a member's retirement or disability; in the event of a member's death, in no event shall such payment be made later than the last day of the calendar year that includes the fifth anniversary of the member's date of death. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-149 Continuation of employment.

Sec. 114-149. - Continuation of employment. If a member continues his employment after the end of his DROP period, payment of his monthly retirement allowance shall be suspended and credits to his DROP account shall cease. He may again become an active member, provided he is then an eligible employee and his employer agrees to pay to the system the actuarial cost of such resumption of membership. Any amount accrued after the end of the member's DROP period shall be paid as a supplement to his original retirement allowance, which shall not be recomputed. Such member's retirement allowance shall again commence as of his separation date, without liability for any payments suspended hereunder. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-150 Fees and expenses.

Sec. 114-150. - Fees and expenses. A member's DROP account shall not be subject to any fees or charges. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

Source: City of New Orleans, Code of Ordinances and Home Rule Charter (Municode Library, library.municode.com)URL: https://library.municode.com/la/new_orleans/codes/code_of_ordinances?nodeId=PTIICO_CH114PE_ARTIIIRESY_DIV6DRREFetched: 10/28/2026