SDCERS Receives Ruling Regarding PSC Contracts of Members in DROP prior to November 20, 2007

Date: Apr 28, 2011


On April 27, 2011, SDCERS received Judge Nevitt’s ruling concerning its request for clarification of the court’s order in the PSC Litigation.  In that clarification, Judge Nevitt ruled that SDCERS must correct affected contracts for those members who entered DROP before November 20, 2007 (click the link below to view the ruling). 

There are 237 members who fall into this category. Of the 237, there are 64 who are still Active DROP and 173 who are Retired DROP. 

Active DROP
SDCERS is awaiting written confirmation from the Mayor’s office that the City will allow the 64 Active DROP Members who entered DROP prior to November 20, 2007 to rescind or reform their DROP contracts as part of the correction process, which potentially could mean the member will work beyond their current DROP exit date. SDCERS will update its website when that confirmation is received.

Retired DROP
The 173 Retired DROP Members who entered DROP prior to November 20, 2007 will be allowed to reform their DROP time as active service time consistent with the correction process provided in SDCERS Board Rule 4.90.

What's Next
SDCERS will be sending correction option letters within the next several weeks to all Active DROP and Retired DROP Members with PSC contracts affected by the June 2010 appellate court ruling. This includes the 237 people now affected by the Nevitt ruling. This letter and correction options packet will contain the details of each correction option and the forms necessary to correct the affected PSC contract, as well as dates for informational seminars that you may attend.


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