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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.
Q: What is the Deferred Retirement Option Program (DROP)?
A: The Deferred Retirement Option Program (DROP) is a retirement benefit offered by the City of Fort Worth, Texas.
Q: How does the DROP program work?
A: Under the DROP program, eligible employees can choose to retire and continue working for a maximum period of five years. During this time, their retirement benefits are deposited into an account, which accrues interest.
Q: Who is eligible for the DROP program?
A: Employees who meet specific criteria, such as having a certain number of years of service and being of a certain age, may be eligible for the DROP program.
Q: Is participation in the DROP program mandatory?
A: No, participation in the DROP program is voluntary. Employees can choose whether or not to enroll in the program.
Q: What happens to the funds deposited into the DROP account?
A: The funds deposited into the DROP account accrue interest and are paid out to the employee upon their final separation from employment.
Q: Can DROP program participants change their minds and return to active employment?
A: No, once an employee enters the DROP program and retires, they cannot return to active employment with the City of Fort Worth, Texas.
Q: Are there any penalties or tax implications associated with the DROP program?
A: Consult a qualified tax advisor for detailed information about the potential penalties or tax implications of participating in the DROP program.
Form Details:
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