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 includes definitions for "deferred retirement option program" and "eligible member," specifying the criteria for participation, which includes being a sworn employee of either department and meeting retirement qualifications.

The bill outlines the administration of the DROP by the District of Columbia Retirement Board, including the creation of interest-bearing accounts for participants and the process for opting into the program. It details the financial arrangements, such as monthly deposits into the DROP accounts and options for distribution upon cessation of participation. Additionally, the legislation 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.