The Deferred Retirement Option Program Amendment Act of 2025 aims to address staffing shortages in the District of Columbia's Fire and Emergency Medical Services Department (FEMS) and the Metropolitan Police Department (MPD) by establishing a Deferred Retirement Option Program (DROP). This program will allow retirement-eligible members of FEMS and MPD to continue working for up to three years after their normal retirement date while accruing supplemental retirement benefits in a separate account. The legislation defines "eligible member" and outlines the administration of the DROP by the District of Columbia Retirement Board, including the creation of interest-bearing accounts for participants.
Key provisions of the bill include the ability for eligible members to receive their salary while also collecting retirement benefits in their DROP account, the option to cease participation at any time with advance notice, and various methods for distributing the DROP account balance upon cessation of participation. Additionally, the bill mandates a report from the Office of the Chief Financial Officer every five years to analyze the fiscal impact of the DROP, participation rates, and its effect on member retention.