Deferred Retirement Option Plan (DROP)

The DROP program is a retirement planning option available to public safety employees with 25 years of service in the city of Los Angeles. (Police, Fire, and Harbor departments)

The program allows employees to begin receiving their pension payments while continuing employment with their department for an additional five years.

The pension payments are deposited to a tax-deferred savings account and accrue interest at a 5% annual rate while in the program.

After five years, employees must fully retire from their department and will begin receiving their pension payments directly.

The tax-deferred savings account can then be distributed as a lump sum payment (with taxes withheld) or moved into a retirement account to invest for the future.

There are several other factors to consider when you are planning for your retirement, and it helps to do some advance planning for your specific situation to maximize the options available prior to making any final decisions.

If you have questions about the program or would like our help in putting a plan together, please don’t hesitate to contact us at 714-738-0220 or

If you would like additional information on the DROP program, you can find it here: