DATE:
January 13, 2026 and January 28, 2026
10
TO:
Board of Supervisors
SUBJECT
ADMINISTRATIVE ITEM:
SECOND CONSIDERATION AND ADOPTION OF ORDINANCE:
Title
ADOPT ORDINANCE FOR A DEFERRED RETIREMENT OPTION PROGRAM (January 13, 2026- First Reading; January 28, 2026 - Second Reading unless ordinance is modified on second reading) (DISTRICTS: ALL)
Body
OVERVIEW
On January 13, 2026 (11), the Board of Supervisors took action to further consider and adopt the Ordinance on January 28, 2026.
A Deferred Retirement Option Program (DROP) is a retirement benefit that generally allows employees to continue employment (earn wages) while simultaneously initiating distributions of pension benefit payments which are set aside for the employee upon retirement. Pursuant to the Government Code (GC), only safety employees can participate in a DROP.
On December 5, 2023 (32), the Board of Supervisors (Board) directed the Chief Administrative Officer (CAO) to work with an actuarial consultant to provide cost neutral options for a DROP for County safety members that are consistent with the County Employees Retirement Law of 1937 (CERL). A County of San Diego (County) DROP must be developed and implemented in accordance with the Government Code, specifically CERL. Cost neutrality of a DROP is required by CERL, which provides that a cost neutral DROP will not have a significant negative financial impact on the members, employer, or the retirement system. Specifically, a proposed DROP would be cost neutral if there are no anticipated increases in employer contributions to the retirement system, the actuarial accrued liability of the retirement fund, or the present value of retirement benefits, and it would not decrease the present value of benefits by more than 3%. The County retained the actuarial firm Foster & Foster to develop options that would be considered cost neutral and subsequently updated the Board through several memoranda.
Subsequent discussions occurred in cons...
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