Notice to Detectives', Sergeants and above re: Variable Supplements Fund Payments
Regular Police Superior Officers’ Variable Supplements Fund (PSOVSF) payments were released as scheduled on December 15, 2012; however PSOVSF Deferred Retirement Option Plan (PSOVSF DROP) payments were not made. PSOVSF DROP payments would only be made to officers who retired in 2012 with over 20 years of allowable police service. This did not impact Police Officers’ VSF or VSF DROP payments.
The assets of the PSOVSF were sufficient to cover the annual payments but not DROP payments in its entirety. Legislation was proposed in the latter half of 2012 to allow a transfer of funds to cover these payments but was not considered in time for enactment. This legislation was considered for action and enacted on January 30, 2013 as Chapter 3 of the Laws of 2013. Accordingly, the Police Pension Fund will release the PSOVSF DROP payments on February 22, 2013.
PSOVSF DROP money is taxable in the year it is issued. As the DROP money will be released in 2013, the Fund will issue a 1099-R for the 2013 tax year. The DROP will either be issued directly to the member or rolled over in accordance with the election made at retirement.
Please note Police Officers were not affected; this does not impact Police Officers’ VSF or VSFDROP payments, as such payments are made from a separate fund. The PSOVSF covers Detectives, Sergeants, Lieutenants, Captains, and ranks above.
For further information please contact the Fund at (212) 693-2699.