ERFC must receive and approve your application (ERFC 41A) at least 60 days before your DROP entry date. See application schedule.
What Is DROP?
DROP allows ERFC Legacy members who are eligible for an unreduced retirement the option to retire for purposes of the ERFC pension plan while continuing to work full time for FCPS and receive a salary for a maximum of five years.
While you'll no longer contribute to or earn additional years of service for your ERFC pension, you will continue contributing to your VRS pension.
Once you enter DROP, your monthly ERFC pension benefit will go to an interest-bearing DROP account that's payable to you at the end of the DROP period. When you exit DROP, you’ll receive the funds in your DROP account and your monthly ERFC pension will start going to you via direct deposit.
Who Can Apply for DROP?
To be eligible for DROP, you must be:
- In the ERFC Legacy plan (Hire Date: Before 7/1/2001)
- Eligible for an unreduced retirement:
- Age 55 with 25 or more years of service
- Age 65 with at least 5 years of service
How Does DROP Work?
As a DROP participant, you’ll:
Work full-time for FCPS
Receive a salary but you won’t contribute to the ERFC Legacy plan or add additional years of service credit to your ERFC pension
Make your ERFC pension payout and survivor option election when you enter DROP
Please Note: This election cannot be changed after you enter DROP, except for limited circumstances as permitted under the ERFC Plan.
Be eligible for promotions and pay increases
Be able to contribute to 457(b) and 403(b) plans
Enjoy health and life insurance benefits at employee rates
Earn leave at the same rate
Please Note: You can convert all of your sick leave balance at the time you enter DROP to service credit or hold back up to 40 hours. You’ll enter DROP with the 14 days of sick leave granted to you on July 1 at the start of the current fiscal year (if you haven’t used them), plus any sick leave hours you chose to hold back.
Any sick leave accrued during DROP is "use it or lose it." You will not be able to apply any unused sick leave accrued during DROP or any unused sick leave carried over from before the DROP period toward years of service credit. Your retirement benefit will not be re-calculated when you leave DROP.
Terminate employment and exit DROP at the end of the 5-year DROP period (or sooner if you choose)
Please Note:
- Participation in DROP does not guarantee continued employment. If your employment with FCPS is terminated or you move to an FCPS position that's not covered by ERFC, you must exit DROP.
- If you enter long-term disability, you must exit DROP. If you're on short-term disability, your participation in DROP doesn't change.
How Is My Monthly DROP Payment Calculated?
The amount credited monthly into your DROP account will be the Legacy benefit formula calculation as of the date you enter DROP.
Your ERFC pension benefit will receive annual retiree cost-of-living adjustment increases and your DROP account will earn an annual 4% interest rate compounded monthly unless the Board of Trustees adopts a lower rate for a particular fiscal year. Interest on your DROP account will only be applied for full months, not partial months.
When you exit DROP after 5 years (or sooner if you choose), you’ll receive the amount in your DROP account and your monthly ERFC pension will start being direct deposited into your bank account.
Please Note: Your retirement benefit will not be re-calculated when you leave DROP.
Is DROP Right for Me?
To help you decide, it's a good idea to run DROP estimates in ERFCDirect comparing these two scenarios:
- The ERFC pension benefit you would receive under DROP without earning additional service credit.
- The ERFC pension benefit you would receive if you continued working and earning additional service credit for the same time period, and then retired without participating in DROP.
Log in and click "Create an Estimate" on the left toolbar.
- To run a DROP estimate, choose "DROP" in the "Type" dropdown.
- To run a regular estimate, choose "Retirement" in the "Type" dropdown.
ERFC cannot provide financial advice. If you have questions about your DROP estimates, please consult your financial advisor.
How Do I Apply for DROP?
Submit the Application to Enter DROP (ERFC 41A) to Start the DROP Entry Process
- Log in to ERFCDirect.
- Locate the Application to Enter DROP (ERFC 41A) under “Forms” on the left toolbar.
- Complete the form and make sure your:
- DROP entry date matches your ERFC retirement date
- Supervisor signs the form
- Submit ERFC 41A to erfcretirement@fcps.edu.
Please Note: You must exit DROP after exactly 5 years. For example, if you enter DROP on November 1, you must exit on November 1 five years later. Please consider this when choosing your DROP entry date.
Receive Confirmation Email
Once you submit your DROP entry form to ERFC, we'll review it and send an email confirming acceptance of your application.
Submit DROP Entry Packet
After you receive email confirmation, log in to ERFCDirect and select "Correspondence" to access your DROP entry packet, which includes:
- Application for Retirement Benefits - ERFC Plan (ERFC 22D)
- Beneficiary Designation (ERFC 1)
Please Note: If you're entering DROP, you should NOT submit an HR-2 at the time of entry. You'll submit your HR-2 when you exit DROP.
You may participate in DROP only once. Your election to enter DROP becomes permanent and cannot be reversed as of your DROP entry date. You can only rescind your election prior to your DROP entry date.
Receive DROP Award Letter
Once your entry packet forms are approved, we’ll send a letter confirming the benefit plan option you chose and the original DROP amount that will be credited to your account each month. You can log in to your ERFCDirect account to track your DROP balance.
Application Schedule
To help ensure a smooth process, we encourage you to submit your DROP application six months in advance if possible. However, ERFC must receive your application at least 60 days prior to your DROP entry date. You'll then receive a DROP entry packet with additional forms that you must submit and ERFC must approve by the 15th of the month prior to entering DROP.
2024
|
DROP Entry Date
|
ERFC Must Receive Your Application By
|
|
7/1/2024
|
5/1/2024 (Deadline Waived)
|
|
8/1/2024
|
7/15/2024 (Deadline to submit required paperwork) |
|
9/1/2024
|
7/1/2024
|
|
10/1/2024
|
8/1/2024
|
11/1/2024
|
9/3/2024
|
|
12/1/2024
|
10/1/2024
|
2025
|
DROP Entry Date
|
ERFC Must Receive Your Application By
|
|
1/1/2025
|
11/1/2024
|
|
2/1/2025
|
12/2/2024
|
|
3/1/2025
|
1/2/2025
|
|
4/1/2025
|
2/3/2025
|
|
5/1/2025
|
3/3/2025
|
|
6/1/2025
|
4/1/2025
|
|
7/1/2025
|
5/1/2025
|
|
8/1/2025
|
6/2/2025
|
9/1/2025
|
7/1/2025
|
|
10/1/2025
|
8/1/2025
|
|
11/1/2025
|
9/1/2025
|
|
12/1/2025
|
10/1/2025
|
2026
|
DROP Entry Date
|
ERFC Must Receive Your Application By
|
|
1/1/2026 |
11/3/2025 |
|
2/1/2026 |
12/1/2025 |
|
3/1/2026 |
1/2/2026 |
|
4/1/2026 |
2/2/2026 |
|
5/1/2026 |
3/2/2026 |
|
6/1/2026 |
4/1/2026 |
|
7/1/2026 |
5/1/2026 |
|
8/1/2026 |
6/1/2026 |
9/1/2026
|
7/1/2026 |
|
10/1/2026 |
8/3/2026 |
|
11/1/2026 |
9/1/2026 |
|
12/1/2026 |
10/1/2026 |
Exiting DROP
After five years, you must exit DROP. You also have the option to exit before the mandatory date without facing any penalties. Once you exit DROP, your monthly ERFC pension will start being direct deposited into your bank account.
To exit DROP, you'll need to complete the following forms:
- Retirement from FCPS (HR-2) Form (FCPS StaffConnect)
- DROP Exit Notification (ERFC 41B) - Can be accessed in ERFCDirectand must be received at least 60 days prior to your DROP exit date
- Direct Deposit Authorization (ERFC 3)
- Tax Withholding Forms
Contact the Virginia Retirement System (VRS)to make decisions regarding:
Contact FCPS HR Benefits at 571-423-3200 (Option #3) or StaffConnect to make decisions regarding:
- Health Insurance
- Dental Insurance
DROP Exit Notification Schedule
ERFC must receive your DROP Exit Notification (ERFC41B) at least 60 days prior to your DROP exit date.
2025
|
DROP Exit Date
|
ERFC Must Receive Your Notification (ERFC 41B) By
|
|
1/1/2025
|
11/1/2024
|
|
2/1/2025
|
12/2/2024
|
|
3/1/2025
|
1/2/2025
|
|
4/1/2025
|
2/3/2025
|
|
5/1/2025
|
3/3/2025
|
|
6/1/2025
|
4/1/2025
|
|
7/1/2025
|
5/1/2025
|
|
8/1/2025
|
6/2/2025
|
9/1/2025
|
7/1/2025
|
|
10/1/2025
|
8/1/2025
|
|
11/1/2025
|
9/1/2025
|
|
12/1/2025
|
10/1/2025
|
2026
|
DROP Exit Date
|
ERFC Must Receive Your Notification By
|
|
1/1/2026 |
11/3/2025 |
|
2/1/2026 |
12/1/2025 |
|
3/1/2026 |
1/2/2026 |
|
4/1/2026 |
2/2/2026 |
|
5/1/2026 |
3/2/2026 |
|
6/1/2026 |
4/1/2026 |
|
7/1/2026 |
5/1/2026 |
|
8/1/2026 |
6/1/2026 |
9/1/2026
|
7/1/2026 |
|
10/1/2026 |
8/3/2026 |
|
11/1/2026 |
9/1/2026 |
|
12/1/2026 |
10/1/2026 |
What Are My DROP Account Balance Payout Options?
When you exit DROP, you can do one of the following:
Lump Sum Payment
You can choose to receive your DROP account balance as a lump sum payment. This payment reflects the total value of your DROP account. We will withhold a mandatory 20% for federal income taxes (plus 4% for Virginia residents if applicable) from your payment.
Rollover
To avoid immediate tax liabilities, you can choose to roll over your DROP account balance into a tax-deferred retirement plan such as a traditional IRA or eligible employer plan.
Lump Sum Payment/Rollover
You can choose to have a certain percentage or dollar amount of your DROP account balance paid to you as a lump sum payment and a certain percentage or dollar amount rolled over.
Death During DROP Period
Your designated beneficiary will be eligible to receive the balance credited to your DROP account at the time of your death.
Divorced?
If you enter DROP and have an ERFC-approved Domestic Relations Order (DRO) on file, you are aware that a portion of your benefits payable under ERFC were assigned to your former spouse through the court entered DRO. If the DRO on file does not specifically address the assignment of benefits during DROP, the terms of the DRO will be applied to your DROP account. Please be aware, the date you enter DROP is your ERFC retirement effective date, and your pension benefits will be payable as of that date (although credited to your DROP account until you exit DROP).
If you choose to apply and are approved to enter DROP, during your participation, an amount equal to your monthly pension amount will be credited to your DROP account. You can only access the funds credited to your DROP account when you exit DROP.