Dividing DROP Benefits in a Columbus, Ohio Divorce: A Guide for Police Officers and Firefighters

Divorce can be complicated — especially when it involves retirement benefits like the Deferred Retirement Option Plan (DROP), available to Ohio police officers and firefighters. If you or your spouse participates in DROP, it’s important to understand how these benefits are classified and divided in a divorce. Here's a clear guide for public safety professionals in Columbus, Ohio.

What is DROP?

The Deferred Retirement Option Plan (DROP) is a benefit through the Ohio Police & Fire Pension Fund (OP&F). It allows eligible officers and firefighters to continue working while their monthly pension is deposited into a separate DROP account, earning interest. When the officer retires, they receive both their regular monthly pension and the accumulated DROP lump sum — which can be a substantial asset.

Is DROP Considered Marital Property?

Yes. Under Ohio law, any portion of DROP accrued during the marriage is considered marital property and subject to division. The portion earned before the marriage or after separation is typically considered separate property. Determining the marital share often requires careful tracing of contributions and interest growth during the marriage. This is especially important if the officer entered DROP before the marriage or remained in the program after separation.

Only the Marital Portion Is Divided

DROP is funded with deferred pension payments — meaning it's not a separate benefit, but a redirection of the officer’s pension into a side account. Because of this, only the DROP funds tied to pension service during the marriage should be subject to division. The remainder — representing pre-marital or post-marital service — is generally considered separate property. An experienced attorney or financial expert can help determine this breakdown accurately.

DROP and Pension Benefits Are Treated Separately

Although both benefits are managed by OP&F, DROP and the regular pension are legally distinct and must be addressed separately in any divorce settlement. Each asset may require its own analysis and division, with particular attention paid to the dates of service and marriage.

Division Requires a DOPO

OP&F is not governed by ERISA, so it does not accept Qualified Domestic Relations Orders (QDROs). Instead, retirement benefits — including DROP — are divided using a Division of Property Order (DOPO). This court-approved order instructs OP&F how to allocate the marital portion of retirement benefits to the non-member spouse. A DOPO must comply with OP&F’s specific requirements. Improperly drafted orders may be rejected, leading to delays or loss of benefits. Working with a lawyer familiar with DOPOs is essential to ensure the order is enforceable.

Tax Implications

Dividing DROP funds may carry tax consequences. Distributions to the non-member spouse may be taxable unless properly rolled into an eligible retirement account. It's best to consult with a financial advisor or tax professional to avoid unnecessary penalties and to structure the division efficiently.

Get the Right Legal and Financial Guidance

DROP benefits are valuable and complex. Whether you're the officer or the spouse, working with an attorney experienced in Ohio public safety pensions is critical. You may also benefit from consulting a financial planner to understand the impact on your long-term retirement security.

Final Thoughts

Dividing DROP benefits in a Columbus divorce isn’t straightforward — but with the right help, it can be handled fairly. Understanding how DROP works, how it’s classified, and how it must be divided through a DOPO will help protect your interests and ensure a smoother divorce process.