New DROP Amendment Presented to City Council, Mayor Nutter Still Lacks Support
Since Mayor Michael Nutter has called to “drop DROP” almost ten months ago, City Council is finally doing something about it.
Councilwoman Marian Tasco introduced legislation today to City Council that prolongs the waiting period an additional two years before city workers are eligible to join the program. The bill also fixes the interest rate that participants would receive from 4.5-percent to rates set by the U.S. Treasury.
“This is not my bill; it’s Council’s,” she told the Inky.
Council President Anna Verna is pressing to have the bill passed before Council splits for their shore houses June 16.
Council member Darrel Clarke says there are not enough votes to end DROP, but he expects the bill to make the program “cost-neutral.”
“I think it will make it better, it will give us some options,” he says.
DROP will be debated on June 6, along with an opposing plan from Mayor Nutter to abolish it. The new amendments may or may not make it cost neutral (that’s something we’ll have to study after the bill goes into effect), but if it is indeed costing the city any money at all while the city’s pension fund is barley half-funded, Nutter will definitely have a case.