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(SAN DIEGO, 2026-01-15 01:42:00) – San Diego County supervisors on Tuesday approved a deferred retirement option program, or DROP, allowing some employees to simultaneously collect a salary and pension, a move hailed by labor officials and scrutinized by fiscal watchdogs.
The unanimous vote establishes a DROP for retirement-age staff in the Sheriff’s Office,District Attorney’s Office and Probation Department,enabling eligible employees to begin receiving pension payments while continuing to work for up to three years. During this period, pension funds are deposited into a dedicated DROP account and paid out as a lump sum upon full retirement.
- San Diego County is the first in California to implement this type of pension plan.
- The program aims to retain experienced staff and perhaps save taxpayer money.
- Critics argue similar programs can lead to “double-dipping” and increased costs.
- The DROP is set to begin on March 20.
What the DROP Means for San Diego County
The approval follows years of lobbying by labor unions,with the san Diego County Deputy Sheriffs’ Association initiating the push in 2023,according to the source. Supporters say the program will help retain valuable employees and potentially lower costs by reducing overtime and recruitment expenses.”By retaining our most experienced employees for additional years, this program will save the county and the taxpayers millions of dollars,” said Michael O’Deane, president of the Deputy Sheriffs’ Association.
Supervisor Joel Anderson echoed this sentiment, stating, “I think this is going to be a great tool to keep some of our best deputies working for the people.”
Cost Neutrality and Concerns
The board’s decision came after pension-plan actuaries confirmed the program would be cost-neutral, as required by state law. However, the program isn’t without its critics. The city of San Diego’s DROP has faced criticism for allowing public employees to “double-dip” into taxpayer money, and concerns remain about potential costs. Joan Bracci, the county’s chief financial officer, stressed Tuesday that the DROP will create new costs for the county.
A county-commissioned study estimated that payroll costs would increase by $15.5 million within five years and $54.4 million within ten years of the program’s adoption. Updating the county’s IT system to accommodate the DROP is expected to cost $150,000, in addition to ongoing administrative expenses, Bracci said.
The county’s DROP differs from the city of San Diego’s program in that DROP accounts will not accrue any interest, and 100% of the county’s pension contributions will go to the San Diego County County Employees’ Retirement Association (SDCERA), not the DROP account.
Did you know?– San Diego County’s DROP program is limited to employees in the Sheriff’s Office, District Attorney’s Office, and Probation Department. It is not available county-wide at this time.
Despite these potential costs, Supervisor Terra Lawson-Remer highlighted the program’s cost neutrality, emphasizing that the county’s plan includes “really significant safeguards” while “making the investments we need for our county.” An actuarial firm hired by the county persistent last year that the proposed DROP would not raise costs – and might even lower them – for SDCERA.
Reader question– How does the county’s DROP differ from similar programs? The county’s plan prohibits interest accrual on DROP accounts and directs all pension contributions to SDCERA.
The program is scheduled to begin on
