Deferred Retirement Option Plan (DROP) Extension Guidelines for the 2009-2010 School Year.

According to Florida Statute 121.091 (Attachment A), certain K-12 instructional DROP participants may be permitted to extend their DROP participation. Eligible participants may extend (on annual contracts) for up to an additional 36 months, but only with the authorization of the Superintendent and approval by the Division of Retirement. However, DROP extension is neither an employee entitlement nor an employee right, but rather an opportunity granted by the Legislature to superintendents to help them meet potential, significant increases in staffing requirements.

In October 2007, the Human Resources Division was charged with the task of analyzing, annually, the district’s instructional staffing to determine whether it would be in the best interest of this district to approve DROP extensions for the upcoming school year. Based on the needs assessment performed for 2008-2009, Human Resources recommended that the Superintendent approve DROP extensions for a limited number of subject areas through June 30, 2009.

In October 2008, the Human Resources Division analyzed the district’s instructional staffing for the 2009-2010 school year. As a result of this needs assessment, Human Resources recommended that the Superintendent approve no extension applications beyond June 30, 2009. This recommendation is only for the 2009-2010 school year.

At this time, based on staffing formulas, student enrollment, and decreased funding by the state, it is in the best interest of our school district to accept no DROP extension applications for the 2009-2010 school year. The Superintendent, however, retains her right to invite an employee to extend, on an exception basis at her discretion.

* Demonstrate best financial practices

Savings due to the elimination of DROP extensions (including salaries and related Social Security taxes and FRS contributions) are estimated to be approximately $4.5 million.

Needs analysis will be performed annually to determine DROP extension consideration.