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Board lowers eligible age for retirement supplement to 50; keeps 10% supplement over five years
Summary
After extended discussion about costs and staffing impacts, the school board voted to change the district’s Deferred Compensation/Income Supplement Program (DCIP) eligibility age from 55 to 50 (still requiring full VRS retirement and the district's last 10 years of service) and to retain the standard 10% supplement paid over up to five years.
The Franklin County School Board voted on Jan. 13 to change its DCIP eligibility age from 55 to 50 and to continue offering the standard DCIP benefit of 10% of final annual salary paid over up to five years for eligible retirees who meet VRS full‑retirement requirements and other policy conditions.
What the change includes - Age requirement: board approved lowering the age threshold from 55 to 50 for DCIP eligibility. The board specified that employees must still meet full Virginia Retirement System (VRS) retirement eligibility and the policy’s existing service requirement that the retiree’s last 10 years of service be in Franklin County Public Schools. - Benefit and duration: the board retained the standard plan of 10% of the final annual salary paid over up to five years. Staff had proposed an alternative three‑year option to reduce long‑term cost; the motion to adopt a three‑year benefit failed on a roll call vote, then the board approved continuing the five‑year option.
Why it mattered to the board Board members and staff described DCIP as a long‑standing recruitment and retention tool that also affects the district’s short‑ and long‑term budget. Administrators said the program has been costly to sustain: staff cited annual payouts approaching roughly $1 million when all DCIP payments are counted. At the same time, the program is used as a mechanism to draw retirees back into day‑to‑day substitute or administrative coverage, which administrators say reduced substitute costs in some years.
Process changes and restrictions Policy committee members and staff said they tightened the allowable post‑retirement duties retirees may perform under DCIP. The revised guidance limits assignments to: (1) filling the post the retiree vacated (in like capacity), (2) substitute teaching or classroom coverage (qualified retirees can substitute without additional training), and (3) other division needs approved by the superintendent or designee. Staff also added a requirement that retirees submit both the DCIP application and a retirement letter together by the Feb. 15 deadline; that change is intended to give the district adequate notice to recruit replacements and post vacancies.
Board votes and outcome - Motion to change eligibility age to 50 (with remaining policy conditions intact): motion passed (voice/roll call indicated in transcript). - Motion for a three‑year payout option: motion failed in a roll call vote. Several board members explicitly voted “no” in the transcript. - Motion to retain a five‑year payout and 10% supplement: motion passed.
What’s next Staff will update the official DCIP policy, application forms and public materials to reflect the new age threshold (effective immediately as revised at the Jan. 13 meeting) and the maintained five‑year payment structure. HR and finance staff said they would provide board members with cost projections to show annual fiscal impact going forward.
