DALLAS (WBAP/KLIF News) – The Dallas Police and Fire Pension Fund had the authority to change the interest rate on the deferred retirement option plan (DROP), according to a recent ruling by the 5th Circuit Court of Appeals.
In Tuesday’s decision, the court said DROP interest is not a constitutionally protected benefit.
The plan had allowed pensioners to retire on paper, but continue to work, and have their checks deferred into DROP accounts.
The interest rate had been 8%, but was lowered to 6% after a 2014 vote by police and firefighters.
Three people had sued claiming they were entitled to the higher interest rate, but the court is disagreed.
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