Deferred Retirement Option Plan (DROP) Extension Guidelines for 2007/2008.

In June 2003, the Florida Legislature passed the DROP extension law. This law allows grades K-12 instructional personnel as defined in s. 1012.01(2)(a)-(d) to participate in the DROP beyond 60 months, but only with the written authorization of the District Superintendent. Approved “annually,” DROP extensions cannot exceed 36 months for any employee.

Many school districts in Florida prohibit DROP extension, as it can be costly and is neither an employee entitlement nor an employee right. However, at this time, it is in the best interests of our school district to allow DROP extensions for personnel teaching in certain subject areas (see attachment), as evidenced by data compiled by the Human Resources Division. The subject areas recommended will be posted annually, based on staffing formulas and student enrollment in these or other programs.

Beginning July 1, 2008, eligible grades K-12 instructional employees who are fully certified for and working in any of the identified positions may apply for DROP extensions. DROP extension applications will be approved through the end of the school year for applicants who have good evaluations and the full support of their principals. In an exceptional situation, an eligible employee may request an administrative transfer to an approved DROP extension area, provided the employee is fully certified and the transfer is endorsed by both schools’ principals.

During the transition period prior to July 1, 2008, DROP extension applications will be approved only through June 30, 2008. Subsequent extension applications for the areas selected for extension will be approved on a fiscal year basis. Employees who have fewer than 12 months remaining in their DROP extension application period must retire as of the termination date printed on their last approved extension. Direct-instruction personnel in grades K-12 (as defined in s. 1012.01(2)(a) who retire may be rehired following one calendar month of FRS Pension Plan retirement. These rehired retirees can collect their district salary plus benefits, in addition to their full FRS monthly pension payments, and start a second FRS retirement (one FRS option vests after one year).

The Legislature passed the DROP extension law to provide district superintendents with the ability to extend DROP participation if a superintendent deemed it necessary to meet the needs of his/her district. In all cases, the statutory discretion to invite or reject any and all applications for DROP extensions remains with the Superintendent.

All District Goals and Critical Success Factors.

The average estimated school district cost savings for hiring instructional personnel new to the district rather than extending instructional personnel enrolled in DROP is approximately $27,500 per position (includes salary, taxes, and retirement). This estimate is based on an analysis of (112) DROP extending employees compared to the district’s average costs for beginning teachers.

The evaluation of subject areas considered for DROP extension will be performed annually.