Deferred Retirement Option Plan (DROP)
In addition to the Service Pension Payment Options, you may also be eligible for the Deferred Retirement Option Plan (DROP) if you are retiring with a normal service pension and you have 25 years of credited service.
Under the DROP, you can get one, two, or three years' worth of your pension benefit paid to you up front in one lump sum when you retire. The amount you choose will reduce your monthly benefit to an amount less than you would receive if you do not elect the DROP; however, the total value of your pension benefit over your life expectancy remains the same. If you elect the DROP, you will receive a lump-sum payment and smaller monthly benefit checks.
Before electing this option, be sure to consider whether a reduced monthly benefit, along with any other sources of income, will meet your needs in years to come. You should also consider the tax implications of receiving a "lump" of money, and you should recognize that electing the DROP lowers your future Cost of Living Allowance (COLA).
You can request an estimate of your future Metro pension benefit, including DROP options, to help you plan your retirement.