News Story

David Jaye Gets the DROP On City Retirement-Padding Schemes

Former state senator takes a lick at triple dippers

Many municipalities in Michigan offer employees a lucrative enticement to stick around a few extra years as they approach retirement.

It comes through a program called a Deferred Retirement Option Plan, or DROP. The plans are most commonly used by police departments, as they try to keep experienced officers on the force in exchange for the opportunity to earn several hundred thousands dollars.

But the program is not limited to police departments. Macomb County offers it to all employees. For example, Kevin Lokar, the county medical director, will receive an estimated extra $488,557 if he stays on his job from 2019 through Jan. 25, 2024.

The county has 258 employees enrolled in a DROP program, according to its response to a FOIA request.

John Schapka, an attorney representing Macomb County, said the county’s DROP program is open to any employee, in any department, who was vested with the county by Dec. 31, 2012.

Exposing DROP’s lucrative incentive is the work of David Jaye, a former Republican state representative and senator. Jaye, who represented a Macomb County district, was known as a budget hawk during his tenure. He was expelled from the Senate in 2001 after three drunk-driving convictions and an assault allegation.

Jaye has spent the last few years tracking government spending in Michigan and Florida, where he has residences. He puts in Freedom of Information Act requests, pays the fees and publishes on a website called TripleDippers.org. He says he puts in the work because he has lived in Washington Township for 30 years and feels he pays too much in property taxes.

He tried to get information about the Michigan State Police employees who are enrolled in a DROP. But, according to Jaye, the department told him it would cost $200 to get that information. He is also trying to get information from the city of Monroe.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.