A Deferred Retirement Option Plan (DROP) shall be adopted and administered by the
Retirement Board. Participation in the DROP shall be limited to five years. The five-year
participation period shall be measured from actual retirement of the Participant.
Upon entering the DROP, a Participant shall elect whether the earnings credited to
the Participant's DROP account shall be either the actual quarterly net investment
return realized by the Plan or four percent per annum. Thereafter, on or before December
1st of each calendar year, Participants shall make an annual irrevocable investment
election for the following calendar year between the actual quarterly net investment
return realized by the Plan or four percent per annum. Investment elections shall
be in writing and submitted to the Retirement Board. If a Participant fails to timely
submit a written investment election to the Retirement Board, the default investment
election for the Participant's DROP account will be four percent per annum. The DROP
shall contain such other terms and conditions as the Retirement Board deems necessary
and appropriate for proper administration of the DROP.
