What happens if I’m promoted while in DROP?
The amount of your retirement benefit, both the amount credited to your DROP account and the amount you eventually receive as a monthly retirement allowance when you actually terminate employment and retire, will not reflect the additional pay from your promotion. So, if you think a promotion for you is likely, you may want to consider the financial impact of delaying your entry into DROP until after your promotion. You may wish to also consider that your monthly pension entitlement, if in Tiers 3, 4, or 5, is based upon the calculation of a twelve month final average salary.
