Eleven firefighters received pension payments exceeding $500,000 last year, and all of them did so by taking part in a little-known loophole in one of San Diego’s most controversial employee benefit programs.
The Deferred Retirement Option Plan, or DROP, allows city employees to collect a paycheck and a pension at the same time, but for a fixed period.
The idea was to retain experienced employees who might otherwise be tempted to retire, saving the city the costs of recruitment and training for newcomers. The program has been held up as an example of pension excess, amid accusations that employees were double dipping by collecting retirement benefits and a paycheck simultaneously. It was discontinued for new employees starting in 2005.
City workers hired before 2005 can still take advantage of the program, but must leave the payroll after five years in DROP. That cap was lifted for firefighters in 2002. They have been allowed to extend their time collecting two checks for as long as 16 additional months while their accrued vacation time is paid out.