The DROP pension program in CA allows police & firefighters to abuse the system and collect extra money before they retire.

The DROP program is an expensive public pension program that hardly anyone knows about, but pays out lump sums that average $200,000 and up to nearly a million dollars in some cases. KPCC's Madeleine Brand spoke with KCET's Judy Muller, who investigated the DROP program.

"DROP" stands for Deferred Retirement Option Plan. LAPD and L.A. Fire Department personnel who've worked for at least 25 years and are at least 50 years old can "retire," then go back to work immediately. When they return to work, pension payments are held while they continue collecting a salary, and after five years, they can leave and collect that money in a lump-sum payment.

By postponing their retirement for five years, they accumulate pension payments (which are also collecting interest) and wages simultaneously.

Many current city officials haven't taken a stance on the program yet, but they're likely to support it due to the strength of the police and fire unions. No politician who wants to get voted into anything else is likely to go up against the unions on such a popular program.



Link:
http://www.scpr.org/news/2011/03/03/little-known-la-policefire-retirement-plan-lets-of/