Expert: Stephanie R - 7/30/2006

Question
Hello Stephanie,

Some years back, I read in our local newspaper about an elementary school principal who was given a cash bonus when she retired.
Is this normal procedure when principals retire?  

Answer
Hey there,

In the state of Florida, we have a program called DROP. When someone signs up for drop, they do get a cash bonus, usually anywhere from 5,000 to 25,000 depending on when they signed and how long they signed for. Let's say a teacher, or principal has been in the system for 30 years. The district can offer incentives for them to stay 5 more years. That incentive in our state is called Drop. For each year they stay, they get a certain amount of money. When the drop program is over, they get a huge bonus, AND money for any sick or personal days they still have left over. It's not necessarily CASH, but it is a lump sum of money usually deposited in their account if they have direct deposit, or by check. Sounds good huh... I can't wait until I'm eligible for DROP! What state are you in? I can find out what type of retirement incentives you may have.

Stephanie