House Bill No. by Representative Bacala amends the Municipal Police Employees' Retirement System (MPERS) to introduce the Back-Deferred Retirement Option Plan (Back-DROP), which allows eligible members to retire and structure their benefits as a combination of a lump-sum payment and a monthly benefit. To qualify for Back-DROP, members must have accrued more service credit than the minimum required for normal retirement and be older than the minimum retirement age. The Back-DROP period is limited to a maximum of 36 months and must precede the retirement date. Additionally, the bill increases the maximum participation period in the Deferred Retirement Option Plan (DROP) from three to five years.

The legislation also revises provisions related to survivor benefits, requiring applications to be submitted by September 30, 2024, or within 120 days of the member's death for immediate benefit effectiveness. If the application is not completed by the deadline, benefits will only take effect upon receipt of a complete application. The bill clarifies that retirees returning to work as police chiefs under specific conditions will not have their benefits suspended and reduces the suspension period for retirees returning to part-time or contract work from 12 months to 60 days. Several existing provisions are repealed, and the bill is set to take effect on July 1, 2024.

Statutes affected:
HB36 Original: 11:2213(11), 11:2220(A)(2), 11:2221(A), 11:4(A)(3), 11:4(3), 11:2220(J)(4), 11:2221(K)(4)