Provisions.

Denver Revised Municipal Code § 18-424

in effect

Sec. 18-424. - Provisions. (a) The duration of participation in the DROP shall be for a maximum of four (4) years. As a condition precedent to participation in the DROP, the participant shall irrevocably elect, in writing on a form prescribed by the board to enter the DROP. The participant shall also acknowledge that no disbursement of any DROP funds can occur absent the retirement, death or termination of employment of the participant. The plan shall provide a copy of such agreement to the employer. (b) The member's retirement benefit shall be calculated at the entry of the DROP. The DROP benefit shall be a monthly amount equal to the member's normal retirement benefit (based on the formula used in the calculation of a member's retirement benefit under division 2 of this article). This amount shall be credited monthly to the participant's DROP account. (c) The participant's DROP account shall be credited with the member's monthly retirement benefit; Cost of Living Adjustments (COLAs) as authorized by the board (in compliance with the rules under division 2 of this article); and, until December 31, 2021, interest at a rate which shall be the plan's actuarial assumption rate for investment return. Beginning January 1, 2022, the participant's DROP account shall be credited with interest at a rate set annually by the Retirement Board, with a minimum rate of one (1) percent, not to exceed three (3) percent, per annum, compounded annually as of June 30th of each year. The employer contribution to the trust established by section 18-403 of the Code, based on the participant's current salary, in accordance with requirements set forth in section 18-408(e) of the Code shall not be credited to the participant's DROP account. (d) At the DROP entry all calculations of vacation and sick payoff amounts shall be in compliance with sections 18-124 and 18-135, respectively, of the Code and in accordance with all other applicable ordinances, policies and rules of the employer. At the exit of the DROP and/or the termination of employment the member shall be paid for the vacation and sick leave hours in compliance with sections 18-124 and 18-135, respectively, of the Code. At the end of the DROP term, if the participant continues employment, the provisions regarding the calculations of plan eligibility and credited service shall apply to the additional bridged service. (e) If the participant's active employment during the DROP period is interrupted by military service, a disability, FMLA or any other paid or unpaid leave of absences, or if a participant terminates employment, but within sixty (60) days, returns to a covered position, then upon returning to active employment, (provided that the participant has not received any distribution from the DROP account, or received any retirement benefits under the plan), the employee shall immediately be eligible for participation in the DROP for the balance of the four-year period. Other than the above-mentioned types of interruptions of participation, the four-year period shall continue to run in all other cases. The participant must be an active employee in pay status for the DROP account to be credited with all the amounts mentioned in this section. In the case of an interruption due to a period of military service, USERRA and its provisions shall govern the participant's rights, eligibility and credits to the DROP account. (f) A participant's election to enter the DROP is irrevocable and may be terminated only upon the death of the participant; termination of employment with the employer, or the end of the four-year DROP period. (g) If the participant is on a paid or unpaid leave of absence but maintains an employer-employee relationship, there can be no disbursement from the DROP account. The participant upon returning to active employment shall continue to participate in the DROP. However, if after the leave of absence, the participant terminates employment and applies for a retirement benefit, the participant may terminate the DROP agreement and after sixty (60) days receive a distribution from the DROP account. (h) The accumulated amounts of the member's normal retirement benefit calculated at the DROP entry, interest at the plan's actuarial assumption rate for investment return or other rate as set by the retirement board, and authorized cost of living adjustments (COLA) (if and when applicable) shall be credited to, and shall be the amount the member receives from the DROP account. The participant's normal retirement benefit amount shall cease being credited to the DROP account after the four-year DROP period. However, the plan's actuarial assumption rate for investment return or other rate as set by the retirement board shall be credited to the participant's DROP account until the entire balance is distributed. (i) The board is authorized to charge the DROP accounts for administrative costs and charges. (j) After terminating employment and exiting the DROP, a participant may be rehired by an employer. If rehired within sixty (60) days, a participant may choose, if the participant has not received a distribution from the DROP or a retirement benefit from the plan, to continue in the DROP for the balance of the four-year period or to continue in the covered service and accrue service credits as a member of the plan. (k) A participant may receive a distribution from the DROP only sixty (60) days after termination of employment. (l) At the end of the DROP term, a participant may continue employment with the employer and shall renew status as an active member of the plan. The plan provisions, the applicable ordinances and federal law shall apply to the member's bridged benefit. (Ord. No. 960-05, § 1, 12-19-05; Ord. No. 691-20, § 1, 7-19-21)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTXIIRE_DIV3DEREOPPLMEDEEMREPL_S18-424PRFetched: 10/27/2026