DROP it like its Hot!! Please Read

So I saw some comments maybe a month or so ago on a police pension DROP and also some yesterday. I had to do some digging.  What I heard is the mayor offered the police a DROP pension. So, for those that do not know what it is (including myself) or how it works, I will explain from what I gathered.

Basically say an employee retires on Jan 1 2026 with a pension of $50,000. The employee does not collect the $50,000 but instead the money is put into a retirement fund, like a 401k.  The city does make some money off of this $50k and the employee is normally capped at a max percentage return say 3-5%. Anything above the 3-5% is the city's however the employee is guaranteed not to lose any money. The employee continues to work at the salary they left at say $75k.  

DROP programs usually last around 2-5 years that someone can benefit from it, but that depends on what is negogiated. When the employee decides to retire a 2nd time, their $50k which has accumulated $50k a year plus interest has to be rolled into another account or that money can be taken out early with normally a 10% penalty. Example.  $50k x 4 years in the drop = $200,000 adding say 3% interest, roughly another $50k (my math isnt 💯  fyi) , said employee after four years would have $250,000 in an account. Or said employee was basically making $62,500/year drop pension plus 75k salary or $137,500  a year for four years.  Aka double dipping in my opinion.

The program is used to keep senior employees or experienced ones. Or in this instance is it for Chief Roca since the mayor has openingly said he wants his "yes man" to be chief as long as he is mayor. However, at what cost? 

Lets 1st look at the raises coming up since Apd's contract is up at the end of the year.

The average officer after 3 years makes over $100,000. Those eligible for the DROP mostly have 20 years of service and have obtained some rank.  So the $100,000 is for patrolman and with those with rank making significantly more. Starting officers make around $70k I believe. A 3% raise per year (which most police contracts are. Fire got 3% and SEIU im hearing got 5%) is roughly $3,000 per guy per year. $3000x200 officers on the force. Thats atleast $600,000-$800,000 a year for tax payers to cover. That doesnt account for the 3% thats added to all overtime.  SEIU's raise probably cost the tax payers $450,000 a year and dont quote me on this, but I am told that each employee got 2 checks each for $1500 as part of their contract. Good for them tho, they deserved it. 

Just a thought. Remember when the water plant had to be sold just to cover the city's obligations to the pension fund. Anything else left to sell if this goes through?

Back on track, the 4% property tax increase for 2026 generated about $1.5 million for the city. So basically the tax increase was gobbled up by the union raises. 

I am figuring the Police DROP Pension will cost tax payers  approx. $885,000-$1.2 million a year since the city loses state funding for the pension when officers enter the DROP program. This number could be more. But I highly doubt the finance department will tell council the cost.

*please note all my numbers are not 100% accurate, but they arent far off at all.  Simply used to give everyone an idea so don't chew my head off.

So I understand needing or wanting to keep older senior officers for their experience, but the cost doesnt seem obtainable in a responsible sense for the city. Plus does anyone think according to my sources Chief Roca getting a $125,000 pension plus his $170,000 salary is right?  That would essentially have him making close to $300,000 a year under the DROP. He could leave after 4 years in the DROP without counting interest at $500,000 in his DROP account.  Is he worth that? Or can't he get another job and has no choice but to stay?

Don't forget the $50 million police station that is getting built which at this rate will cost over $70million. Or the Fire department and health department that is proposed at another i dont know 60-70 million.

Where the hell is this money coming from?  Is the tooth fairy dropping Mayor Tuerk millions?

Without some serious budget cuts, the city is looking at atleast an 8% tax increase next year to cover a DROP and to pay for the new station. 8% is probably low, but expect tax increases of atleast 5-12% each year for the next 4 years. Will be interesting for the 1st year councilmen to have to vote on a huge tax increase just to save the city.  

I just explained where alot of money will be going and I am letting out more expenses they need to cover. The city will be broke.  But honestly I feel that at this point is the mayor’s goal.

Little story: I have a friend who worked a union job where there was a DROP program. He told me the DROP keeps alot of sluggish people. Mostly, the people who have little to know skills besides what they are currently doing. Or it helps those that are financially irresponsible. Either way, it really isnt keeping the best employees. He stated he was amazed by the amount of surgeries people had once they were in the DROP. He stated sick time abuse or personal leave  was sky high and basically anyway to not come to work was the goal.  The reason why was because people didnt care if they got fired. THEY WERE ALREADY RETIRED!! Also, they were guaranteed their pension no matter what!!

Lastly, I am not sure how SEIU and AFD would fare if APD is given a DROP since they just signed new contracts, but I imagine they will want one as well.  Atleast the greedy firefighters will.

Some of the recent pensions, which are close to 90% of their salary.  Something is not right.

https://allentownpa.legistar.com/View.ashx?M=A&ID=1385249&GUID=8DD66DB9-3524-4568-8C15-E4CB0A0CD617

https://allentownpa.legistar.com/View.ashx?M=A&ID=1385251&GUID=07701725-460D-4B27-B58F-6DBB1C8692C9

Here's also why the city is going broke.  

https://www.allentownpa.gov/Portals/0/files/Departments/Finance/Budget2026/Final/000-04%20Police%20Final%20Book%20-%20Amended.pdf

Look at some of these salaries.  Two public safety analysts making over $80,000 due to a $4500 raise from last year.  What exactly do they do??? Analyze where crime is? Those positions should be outsourced to a data company.  Waste. 

The police raises and budget is insane.  I do support the police, but lets be honest, they are the cause of some of the city's financial issues and like AFD they continue to want more.

Now compare all I said to your job. Ridiculous right?  I work part time and am semi retired, but my career did not offer pensions this high. Drain the swamp.