Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 895.1111. Establishment of DROP

(a) Local governments.--A local government that has established or maintains a defined benefit pension plan for a group of its employees which is self-insured in whole or in part under section 202(b),  1 except for a local government that has joined the Pennsylvania Municipal Retirement System, may establish by ordinance a DROP for those employees as part of the pension plan.  The ordinance establishing the DROP shall specify a uniform participation period of not more than five years in duration.

(b) Participants.--A local government that has established or maintains a defined benefit plan for a group of its employees which is self-insured in whole or in part under section 202(b) and has joined the Pennsylvania Municipal Retirement System may establish a DROP for those employees as a part of the pension plan only through participation in the DROP established and administered by the Pennsylvania Municipal Retirement System.

(c) Standards.--The Pennsylvania Municipal Retirement Board shall establish a DROP for local government-defined benefit pension plans that have joined the Pennsylvania Municipal Retirement System.  The DROP shall be uniform, in compliance with the provisions of this chapter, open to any local government and applicable to any of the defined benefit pension plans administered by the Pennsylvania Municipal Retirement System.