Los Angeles Times

DROP this costly program

- Aced with

Fthe embarrassi­ng revelation that a controvers­ial city program practicall­y encouraged retirement-age police officers and firefighte­rs to collect disability payments instead of retiring, Los Angeles Mayor Eric Garcetti needed to make dramatic changes to end the abuse. What he and labor negotiator­s came up with, however, was a tweak.

The Deferred Retirement Option Plan, or DROP, was designed to keep badly needed senior personnel on the job by paying them salaries and pensions simultaneo­usly for the last five years of their careers. But a Times investigat­ion earlier this year found that many officers and firefighte­rs file disability claims soon — even within days — after signing up for DROP. Some spend months and even years on disability, often for such routine, age-related problems as high blood pressure and joint pain.

The system almost invites abuse: Workers can all but retire for long stretches of time — by going on disability leave — without actually retiring, allowing them to collect their salaries while also banking their pension payments. Meanwhile, the city has to pay other workers to fill their shifts.

In August, Garcetti announced a proposed change to discourage misuse. The program would suspend pension payments to any officer or firefighte­r in DROP who does not work at least 112 hours on active duty in any given month — that’s about two weeks for a firefighte­r and nearly three weeks for a police officer. The rule would be waived for employees who sustain an injury in the line of duty that puts them in the hospital for three days or longer.

It’s a common-sense change, but a fairly moderate one too. So are the savings, which analysts said could amount to about $7 million a year in the future — far less than 1% of the police and firefighte­r payroll.

This is just tinkering. Garcetti ought to be trying to eliminate the double-dipping program altogether.

DROP was proposed nearly two decades ago as a lucrative enticement to persuade veteran LAPD officers to stay on the force amid the Rampart corruption scandal. But retention isn’t much of a problem today — especially not for the Los Angeles Fire Department, which has no problem recruiting or retaining firefighte­rs.

DROP has been controvers­ial from the beginning. There is no screening of applicants, nor any assessment of whether their skills are needed. There were early reports that some fire and police personnel were abusing the program by filing for disability shortly after enrolling, and analysts found workers filed "significan­tly" more injuredon-duty claims while they were in DROP.

But the program is popular with officers and firefighte­rs, so their politicall­y powerful unions have defended it. No wonder why. Just look at LAPD Chief Michel Moore, who quietly retired in January after five years in DROP, collected his $1.27-million DROP check and then returned to his $299,000-ayear job under a maneuver called the “bounce.” He was hired as chief shortly thereafter. It’s both perfectly legal and a misuse of taxpayer dollars.

Garcetti’s office said the mayor believes DROP is a valuable program that helps attract and retain the best personnel. Los Angeles Fire and Police Pensions staff is now evaluating whether DROP adds to the city’s costs, as it seems to do. If it does, Garcetti’s office said, he would attempt to negotiate changes with unions to make the program cost neutral.

Good luck with that. Cities across the country have abandoned their DROP programs amid ballooning pension costs and reports of abuse. It’s hard to believe that L.A. will be able to justify the expense. DROP is a pricey program that has outlived its usefulness.

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