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City Workers' DROP Accounts Get New Interest Rate Tied to Fund Earnings Starting Immediately

Official:Amending Title 22 of The Philadelphia Code, entitled "Public Employees Retirement Code," by amending Section 22-310, entitled "Deferred Retirement Option Plan (DROP)," by revising the interest rate applied to DROP account balances; under certain terms and conditions.

Sponsor: Councilmember Tasco

Introduced: March 12, 2009

: Committee on Finance

pensions

No one voted on this bill

This bill was introduced in the 2008–2011 Council term and when that term ran out. The public record shows no committee vote and no floor vote at any stage, so no member of Council ever went on record for or against it.

That is not unusual here. Of the 8,465 bills introduced between 2000 and 2025, 1,624 lapsed without a single recorded vote. Ninety percent of bills that became law carry a roll call. Three percent of lapsed bills do. How this works.

Plain-Language Summary

This bill changes how interest is calculated on Deferred Retirement Option Plan (DROP) accounts for city employees. The new interest rate will be tied to the fund's earnings rate and capped at 50% of the actuarial assumed earnings rate.

What This Bill Does

AI-written. Every figure is checked against the bill text.

The interest rate applied to Deferred Retirement Option Plan (DROP) accounts will be tied to the fund's earnings rate, rather than a fixed rate of 4.5%.
The interest rate will be capped at 50% of the actuarial assumed earnings rate of the pension system.
The Board will review the interest rate not less than annually and adjust it prospectively or retrospectively to ensure it equals the earnings rate for the fund for the previous year.
The Board will make "appropriate timing adjustments" when determining the interest rate, but the rate will not exceed 50% of the actuarial assumed earnings rate.