Created : March 17, 2013 at 07:01 PM
January 18, 2005
Status: Pending
Approve the revisions to Policy 4305 at this first reading.
Senate Bill 300, which was enacted by the 2004 Legislature, eliminated a 60-day statutory limit, imposed in 2001, on the amount of accumulated sick leave which could be paid to employees other than instructional or educational support as terminal pay. Currently, administrators are the only employee category whose sick leave has been capped for terminal pay purposes.
Actuarial analysis of the fiscal impact of implementing Senate Bill 300 indicates that for administrators currently in the Deferred Retirement Option Plan (DROP) program, the increased cost of sick leave payout for 2001/02 through 2003/04 is $600,000. The annual recurring cost of this action will be approximately $200,000. The total potential cost for all administrators would be $2.0 to $2.5 million if all administrators were to resign from the District immediately.
The financial impact for employees in DROP is $600,000 in addition to an annual cost of $200,000. The source of the funds is the unappropriated fund balance.
Requested Action
Approve the revisions to Policy 4305 at this first reading.
Summary
Senate Bill 300, which was enacted by the 2004 Legislature, eliminated a 60-day statutory limit, imposed in 2001, on the amount of accumulated sick leave which could be paid to employees other than instructional or educational support as terminal pay. Currently, administrators are the only employee category whose sick leave has been capped for terminal pay purposes.
Actuarial analysis of the fiscal impact of implementing Senate Bill 300 indicates that for administrators currently in the Deferred Retirement Option Plan (DROP) program, the increased cost of sick leave payout for 2001/02 through 2003/04 is $600,000. The annual recurring cost of this action will be approximately $200,000. The total potential cost for all administrators would be $2.0 to $2.5 million if all administrators were to resign from the District immediately.
School Board Goals
| Goal 4 - All stakeholders will work together to build a better school system. |
Financial Impact
The financial impact for employees in DROP is $600,000 in addition to an annual cost of $200,000. The source of the funds is the unappropriated fund balance.
Source of Additional Information
Ronald J. Weintraub (754) 321-3100 Dan G. Cochran (754) 321-1840
Associated File Attachments
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Policy 4305 (Files) | |
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ExecutedARF (Files) |