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Is Florida extending the drop program?

K-12 Instructional Personnel DROP Extension Extended the maximum amount of time for K-12 Instructional Personnel, as defined by Florida Statute, to participate in DROP from 96 to 120 calendar months, effective June 30, 2023.

How does the drop program work in Louisiana?

The Deferred Retirement Option Plan (DROP) is an optional program in which a member of the Teachers Retirement System of Louisiana (TRSL) chooses to freeze his/her regular monthly retirement benefit and to have this benefit deposited each month in a special account at TRSL while continuing to work and draw a salary

How is drop calculated?

Calculating Your DROP Benefits The amount of compensation youre able to receive through a DROP is based on your average annual salary, how many years of service you have under your belt, the accrual rate, and the length of time you participate in the plan.

What are the cons of a drop program?

Deferred Retirement Option Plans The cost impact of a DROP is difficult to assess. DROPs may conflict with goals of pension design. Employee choice frequently increases employer cost. Specific DROP characteristics and features often add additional cost. Partial lump sum option plans (PLOPs) considerations.

What does drop pay mean?

A deferred retirement option plan (DROP) is an arrangement that gives employees eligible for a defined benefit plan the choice to keep working without adding years of service that raise their pension amount.

What is a deferred retirement?

Deferred retirement is for former federal employees who were not entitled to an annuity upon separating from Federal service but will become entitled to an annuity after docHubing a certain age.

When am I eligible for drop?

When should I apply for DROP? If you are vested, you become eligible to participate in DROP any time after you docHub your normal retirement date. The earliest you may submit your application to participate in DROP is six months before docHubing your normal retirement date.

What is the benefit of drop?

DROPs allow employees who are eligible to retire from a defined benefit plan to instead continue working and elect to participate in the DROP.

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