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Title: Deferred Retirement Option ("DROP") Plans - National Association of State Retirement Administrators
Description: Explains the legal and practical issues in adopting these plans, under which a member of a traditional final average pay defined benefit pension plan agrees to defer leaving employment on condition of being deemed to have retired for purposes of the plan. The pension benefits the individual would have received had he or she retired are then typically contributed to a separate account, which resembles a defined contribution plan.
Directory: Society/Law/Legal_Information/Employment_Law/Employee_Benefits
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