Districts who hire retired teachers to get back in classrooms must pay up to $10,000 a...
Woods said the 2021 rules have made it about $8,000 to $10,000 more expensive per year for a school district to hire a teacher out of retirement. That estimate was for Northside ISD, as it could differ around the state. He estimated that the district needs to fill about 200 teaching positions.
“That has actually been a cause for concern for many districts because that is a new cost that they shared in the past or didn’t have to pay at all. Now that they’re paying it, they’re a bit reluctant to hire retirees into those positions. That’s something that is a policy issue that I know many of you are aware of, and we look forward to working with you on it this session,” Guthrie said.
Those hires were therefore draining resources from the pension system, which relies on contributions from working teachers to keep it solvent. So in the mid-2000s, the Legislature created a “surcharge” fee that had to be paid for retired teachers returning to work. That fee covered the pension contributions that would be missed, and the cost would be negotiated and shared between the teacher and the district.
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