CHAPTER 6.00 - PERSONNEL

6.216 Deferred Retirement Upon Program (Drop)

Policy:

The Deferred Retirement Option Program ("DROP") as defined in Chapter 121, Florida Statutes, is an alternative method of deferred payment of retirement benefits for up to ninety-six (96) months after an eligible member of the Florida Retirement System reaches his/her normal retirement date but wishes to continue employment with a Florida Retirement System employer. In order to participate, the employee must submit a binding letter of resignation, establishing a deferred termination date. DROP will allow the participant to defer all retirement benefits payable during the DROP period. Upon termination of DROP, the participant will receive the DROP benefits and their regular retirement benefits under Chapter 121, Florida Statutes. 

I. Participation in DROP: All members of the Florida Retirement System are eligible for DROP. Members electing to participate in DROP must meet the eligibility and timeline requirements outlined in Florida Statute. 

II. DROP participation may be extended beyond the initial 96 calendar-month period if the instructional and administrative personnel’s termination date is before the end of the school year. Instructional and administrative DROP personnel may have DROP extended until the last day of the last calendar month of the school year in which their original DROP termination date occurred if their DROP termination date is other than the last date of the last calendar month of the school year. 

III. Statutorily defined instructional personnel in grades K-12, authorized by the school superintendent, may extend DROP participation for up to an additional 24 months beyond the 96-month period. 

IV. Benefits Payable 

A. Sick Leave - Employees will be paid terminal pay for accumulated sick leave at retirement, or, if service is terminated by death, to his/her beneficiary based on the amounts determined in Policy 6.31. Upon election to participate in DROP, and based upon the employee established deferred termination date, previously accumulated sick leave shall be paid to the employee according to his/her current salary at the time of payment in the following prorated installments: 

5 years before end of active service – 20% of balance 

4 years before end of active service – 25% of balance 

3 years before end of active service – 33% of balance 

2 years before end of active service – 50% of balance 

Final year before end of active service – 100% of balance 

1. Sick leave will be earned during DROP as prescribed by Florida Statutes. Accumulated sick leave earned during DROP participation will be paid to the employee according to his/her current salary as noted in IV.A.. 

B. Annual Leave - Employees electing to participate in DROP shall be entitled to terminal pay for accrued annual leave as required by state law, Board Policy and/or union contract. Upon election to participate in DROP, and the employee's election to receive a lump-sum payment of accrued annual leave, the employee can choose to receive a lump-sum payment of accumulated annual leave either at the time of DROP entry or after DROP participation ends. If leave is paid at the time of DROP entry, the lump sum payment will be eligible for inclusion in the employee’s retirement benefit calculation. If the lump sum is paid at the end of DROP participation, it will not be included in the employee’s retirement benefit calculation. A maximum of 60 days accrued annual leave shall be paid to the employee according to his/her current salary at the time of payment. 

1. Annual leave earned prior to entering DROP which exceeds the maximum lump sum payment allowed by Board policy may be used during DROP; however, the employee shall not be entitled to compensation at the end of DROP for any unused portion of the accumulated leave. 

2. Employees will earn annual leave during the DROP period as prescribed by Florida Statute, Board Policy and/or union contract. Annual leave accumulated during DROP participation will not be paid to the employee at the end of DROP participation, except to the extent the employee has earned additional annual leave which combined with the original payment does not exceed the maximum payment allowed by Board Policy.

C. Disbursement of terminal pay (sick leave and annual leave) 

1. Disbursements less than $2,000 will be made to the employee. 

2. Disbursements of $2,000 or more shall be contributed to the tax deferral plan adopted by the school board and shall then be paid to the employee in accordance with the terms of such plan. 

STATUTORY AUTHORITY : 1001.41; 1012.01; 1012.22; 1012.23, F.S.

LAWS IMPLEMENTED: 121.091; 1001.43, F.S. 

History: Adopted: October 14, 1999 

Revision Date(s): October 9, 2001; June 10, 2003; October 7, 2003; 

June 29, 2004; November 16, 2021; January 11, 2024 

Formerly: