Mayor Nutter: It is Time to Drop DROP

Philadelphia, August 3, 2010 – Today, Mayor Michael A. Nutter announced that he will be sending legislation to City Council to end Philadelphia’s Deferred Retirement Option Plan (DROP) program. This is as a result of the release of \”The Impact of Philadelphia’s DROP Program on the Age of Retirement and Employer Pension Costs\”.

\”The release of this report should clear up any misunderstandings regarding the cost of the DROP program to Philadelphia taxpayers. Having cost the City $258 million since 1999, DROP is not cost neutral, and we cannot afford it.\” said Mayor Nutter. \”I believe DROP must be abolished. It was created by legislation, and it must be ended by legislation, which I will submit to City Council as soon as possible. It is time to drop DROP.\”

The report, which was commissioned by the City of Philadelphia and conducted by the Center for