PSP Program Provision Highlights

The following is a partial summary of key provisions of the PSP Program. Please refer to the ordinance for more details.

• Participation in the Program -- Purchases must be initiated and finalized prior to entering DROP or retiring.
• DROP Window --
  • Members who entered DROP from January 1, 2008, through May 1, 2008 may initiate PSP purchases no later than August 1, 2008.
  • Purchases must be finalized no later than August 1, 2009.
  • Members utilizing the DROP window must be in DROP at the time the purchase is initiated and finalized.
• Cost Neutrality -- The program shall be cost-neutral with participating members paying the full cost of the purchased service.
• Eligible Service --
  • Full-time service: Minimum of 6 months of uninterrupted service
  • Can purchase no more than 4 years
  • Military Service: Must be honorably discharged
  • Police or Fire Agency: Cannot have been terminated for cause
• Restrictions --
  • Purchased service credit will only count toward increasing a member's monthly pension allowance and any survivorship benefits.
  • Purchased service will not count toward health subsidy credit, eligibility for service retirement or eligibility to enter DROP.
  • Does not count towards years of service for ceasing pension contributions.
• Methods of Purchasing Service --
  • Lump sum
  • Contract for payroll deductions
  • Transfer from Deferred Compensation account
  • Combination of lump sum, payroll deductions and/or transfer from Deferred Compensation
• Refund of Payments -- Purchase may be refundable under certain conditions.

If you have any questions, please call the Active Member Services Section at (213) 978-4522 or (800) 787-2489, ext. 84522.