Distribution Payment Selection - Deferred Retirement Option Program (Drop) - City of Fort Worth, Texas

Distribution Payment Selection - Option Program (Drop) is a legal document that was released by the Employees’ Retirement Fund - City of Fort Worth, Texas - a government authority operating within Texas. The form may be used strictly within City of Fort Worth.

FAQ

Q: What is the Deferred Retirement Option Program (DROP)?
A: The Deferred Retirement Option Program (DROP) is a program offered by the City of Fort Worth, Texas.

Q: How does the DROP program work?
A: The DROP program allows eligible employees to retire from their position while continuing to work for a specified period. During this period, their retirement benefits are deposited into a separate account, which accrues interest.

Q: Who is eligible for the DROP program in Fort Worth, Texas?
A: Eligibility for the DROP program in Fort Worth, Texas depends on the specific criteria set by the city. Please consult the program guidelines or contact the relevant city department for more information.

Q: What happens to the retirement benefits deposited into the DROP account?
A: The retirement benefits deposited into the DROP account accrue interest and are typically paid out to the participant in a lump sum upon termination or retirement from the DROP program.

Q: Can the participant withdraw the funds from the DROP account before retirement?
A: It depends on the rules of the specific DROP program. Some programs may allow partial withdrawals or loans against the funds, while others may restrict withdrawals until retirement.

Q: What are the advantages of participating in the DROP program?
A: The advantages of participating in the DROP program include the ability to accumulate additional retirement funds, accrue interest on those funds, and continue working for a specified period while receiving retirement benefits.

Q: Are there any disadvantages to participating in the DROP program?
A: Disadvantages of participating in the DROP program may include limitations on the ability to access funds before retirement and potential impact on other retirement benefits or social security benefits. It is important to thoroughly understand the terms and conditions of the program before participating.