The Pennsylvania Intergovernmental Cooperation Authority issued a study on the cost of the City of Philadelphia’s Deferred Retirement Option Plan (“DROP”) since 2010. The study was conducted by the Center for Retirement Research at Boston College , the same institute that conducted the 2010 study. As is evident from this study, DROP continues to add costs to a pension system that is only 44.8 percent funded with an unfunded liability of $6.1 billion. Reform measures must be considered to lessen future additional costs to ensure the health of the pension system. PICA will continue to conduct research, consult with experts, and publish reports with recommendations to improve the fiscal sustainability of the pension system.
To view the report, click here.
To view the accompanying press release, click here.