Members who retire for Service on or after October 1, 1968 are eligible to receive an annual statutorily defined Variable Supplements Fund (VSF) payment in addition to regular pension payments. The annual VSF benefit for 2008 and every year thereafter is $12,000. For the year of retirement, VSF is prorated based upon the number of full months of service completed in that calendar year. Vested members and members who retire for Ordinary or Accident Disability are not eligible for VSF benefits.
VSF DROP (Deferred Retirement Option Plan)
In addition to the annual VSF benefit discussed above, members who continue on active duty beyond the 20th anniversary, and ultimately retire for Service, may be entitled to the VSF DROP (Deferred Retirement Option Plan), also known as the “Banked Variable.” The VSF DROP was designed to retain experienced members of the NYPD by guaranteeing a lump sum payment upon retirement for each year the member remains in active service beyond the member’s Early Service Retirement Eligibility Date (20 years). Accrued VSF DROP funds are eligible for rollover, subject to IRS regulations.
The VSF DROP is not payable to members who die while in active service or who are terminated from the NYPD.
VSF Payment Schedule
VSF and VSF DROP payments will be made or credited on or about December 15th of the retirement year. Members who retire in the month of December are not eligible for a prorated VSF for the month; however, if the member is eligible for the VSF DROP, it will be paid in the December of the following year.