Legislative update

OPERS opposes proposed Ohio House bill to create a ‘DROP’

By Michael Pramik, Ohio Public Employees Retirement System

May 14, 2026 – OPERS staff members have met regularly with members of the Ohio House Public Insurance and Pensions Committee, advocating in opposition to House Bill 73, which would require OPERS to implement a Deferred Retirement Option Plan, also referred to as a DROP program, for our Law Enforcement Division.

OPERS opposes this proposal because it would require us to unnecessarily devote money and resources toward building a new program that would be accessible only to a small percentage of our members.

OPERS Executive Director Karen Carraher has testified in opposition to HB 73, stating clearly that a proposal to create a Deferred Retirement Option Plan for law enforcement officers would be unnecessary, inefficient and costly to implement.

OPERS believes there is no need to create a program that is inferior to the options that we currently offer. OPERS law enforcement members can replace a greater percentage of their final average salary than the other public safety-focused systems. In addition, for retired members who are re-employed in an OPERS-covered position, a combination of a Partial Lump Sum Option Payment, or PLOP, at retirement and paying into a Money Purchase Annuity during reemployment is a better financial option than a DROP program.

During a hearing in late March before the House Public Insurance & Pensions Committee on House Bill 73, Carraher stated that the program could require about $10 million in system changes. Our technology is structured around active and retired members, and adding a DROP program would require extensive reprogramming, potentially affecting cost-of-living adjustments and survivor and disability benefits.

It was the third hearing of the legislation, which is sponsored by Rep. Kevin Miller (R-Newark) and Rep. Thomas Hall (R-Madison Twp.).

Carraher also testified in opposition to House Bill 424, which would address how service credit is transferred between OPERS and the Ohio Police & Fire Pension Fund. Acknowledging the need for a resolution, OPERS opposes the bill and has proposed a better solution: eliminating the active-duty requirement to transfer service credit to OP&F. OPERS staff members continue to explore alternative solutions.