19-6-1001. Short title
19-6-1001. Short title. This part may be cited as the “deferred retirement option plan” or “DROP”. History: En. Sec. 1, Ch. 258, L. 2015.
19-6-1002. Definitions
19-6-1002. Definitions. Unless the context requires otherwise, as used in this part, the following definitions apply: (1) ”DROP” means the deferred retirement option plan established pursuant to this part. (2) ”DROP account” means the member’s accumulated monthly DROP accruals, plus interest. (3) ”DROP benefit” means the lump-sum benefit calculated and distributed as provided in this part. (4) ”DROP period” means […]
19-6-1003. Deferred retirement option plan established — rulemaking
19-6-1003. Deferred retirement option plan established — rulemaking. (1) The board shall establish a DROP for eligible members of the retirement system who elect to participate. (2) The board shall administer the DROP in compliance with the Internal Revenue Code and the applicable rules, regulations, and determinations of the internal revenue service. (3) The board may adopt rules […]
19-6-1004. Eligibility — participation criteria — membership status — service interruptions
19-6-1004. Eligibility — participation criteria — membership status — service interruptions. (1) Any member eligible to retire under 19-6-501 is eligible for and may elect to participate in the DROP by filing a one-time irrevocable election with the board on a form prescribed by the board. (2) A member electing to participate in the DROP shall participate […]
19-6-1005. Retirement system contributions — benefit payments to individual DROP accounts — investment returns
19-6-1005. Retirement system contributions — benefit payments to individual DROP accounts — investment returns. (1) (a) During a participant’s DROP period, state contributions under 19-6-410 and employer contributions under 19-6-404 must continue to be made to the retirement system. (b) Member contributions under 19-6-402 must be made to the member’s DROP account. (2) Each month during the DROP period, […]
19-6-1006. Survivorship benefit
19-6-1006. Survivorship benefit. (1) If a participant dies prior to the receipt of the DROP benefit pursuant to 19-6-1008, the participant’s surviving spouse or dependent child is entitled to receive a lump-sum payment equal to the participant’s DROP benefit as of the date of the participant’s death and the benefit the surviving spouse or dependent child […]
19-6-1007. Employment and benefits after DROP period
19-6-1007. Employment and benefits after DROP period. (1) When a member, after the end of the DROP period, continues employment in a covered position, state contributions under 19-6-410, employer contributions under 19-6-404, and member contributions under 19-6-402 must continue to be made to the retirement system. (2) A member who, after the end of the DROP period, […]
19-6-1008. Distribution of DROP benefit
19-6-1008. Distribution of DROP benefit. (1) Upon termination of service, a participant is entitled to: (a) receive a lump-sum distribution of the participant’s DROP benefit; (b) roll the participant’s DROP benefit into another eligible retirement plan in a manner prescribed and authorized by the board; or (c) any other distribution or method of payment of the DROP benefit approved […]