Mayor Nutter Tries to Stop DROP from Ruining Philadelphia Families and Programs

With all of the strife and struggle at the national level often, the important victories are lost in the shadows. Mayor Michael Nutter of Philadelphia has turned out to be a progressive and proactive leader; implementing programs promising to arrest the slow decline of the city of Philadelphia-one of the less developed cities in the United States with median income of $38,000, according to the US Census Bureau. This number is well below the average for Pennsylvania and the Nation. In this case, Mayor Nutter is trying to kill DROP, a program that bleeds the city coffers and served only to enrich City Council workers who need it least.

What is DROP?

Initiated in 1999, DROP (Deferred Retirement Option Plan) intended to act as an incentive to keep experienced employees working longer and give Philadelphia's Human Resources department time to train new employees. DROP allows City workers to set a retirement date up to four years in advance, during which time workers' pension payments begin. Payments are deposited into an account to collect interest at a rate of 4.5 percent. When the real retirement date finally comes, the "retiring" City workers receive a lump sum check for the accrued pension and interest.

Why DROP is a Problem

I, as well as many outspoken Philadelphia residents and media outlets, am finding several problems with this. First, the "retiring" employee continues working and collecting their retirement at the same time. How does benefitting the employees' bank account help Philadelphia? For most ordinary city employees, DROP is a godsend, allowing them to save for the end of career. For others, it is a little different, as is the case of City Councilwoman Joan Krajewski. She retired for one day-long enough to collect the DROP check-and returned to City Council the next day. She continues to collect a pension check while working on the Council. The total lump sum amount was reportedly in the six figures. How does this happen?

The Guilty
Six other members will receive over $2 million in DROP payments at the end of their terms next year. While it is unknown how many expect to run for reelection, the Majority Council Leader, Marian Tasco, expecting her DROP payment while fully expecting to run again this Election 2010 year, as are other DROP receivers. DROP is costing the city over $22 million annually and with the economy so damaged, Mayor Nutter is making a tough decision in an attempt to stop these City Council workers from stealing from Philadelphia programs and families.

I am a big supporter of the city worker; fire, police, and other municipal workers who are the backbone of Philadelphia. I also support the families like mine who are facing a 10 percent increase in property taxes this year because the Philadelphia budget is busted. Why should I-or any other Philadelphian-have to pay an extra 10 percent on property tax because DROP bled the budget dry?

Mayor Nutter to the Rescue-Again
Mayor Nutter is going up against DROP in order to save the city budget and its normal pension fund, which is currently $4 billion underfunded-would it be if DROP did not exist? These are tough times and anyone who HAS a pension is lucky, so why should City Council "double dip" and start over again upon reelection-to possibly announce another retirement years later and receive another DROP payment? I am lucky to have a job now-as are many Philadelphians-and lucky to pay only part of my bills at all and now my bills increase because DROP leaves the budget a shambles? How do we let this sort of thing happen?

A pension is for guaranteeing one's comfortable retirement, not for boosting one's income while they return to high-paying Council job. Think of the other programs that Philadelphia might allot more money to if DROP disappeared-especially the underfunded and understaffed police and fire departments and families that must pay these corrupt Councilpersons with higher taxes-the City Council pension abuse must stop, period.

"Median Family Income Philadelphia, 1999" U.S. Census Bureau
"Recreation Department Manuals and Regulations: DROP Outline, "City of Philadelphia
Dave Davies, "Nutter & Council get Ready for a DROP Showdown," WHYY News & Information
Dave Davies, "City Council approves property-tax increase," WHYY News & Information
Ben Simmoneau, "Report: DROP Program Cost Philadelphia Millions," CBS3