Board approves new return-to-work policy allowing retired employees to come back under limited terms

The Osborn School District board approved an initial draft of a return-to-work policy that will allow employees who meet Arizona State Retirement System (ASRS) eligibility to retire and then return to district employment under a contracted arrangement.

HR staff and Dr. Woodland presented the policy concept, describing a model in which a retiring employee separates from district payroll to begin drawing their pension and then returns to work through a contracted agency for up to one year while earning up to 80% of their prior salary. The presenters illustrated the financial effect with a hypothetical: an employee with a $50,000 salary who retires and draws $30,000 in pension could return and earn 80% (about $40,000) from the district-contracted assignment, resulting in combined compensation higher than salary alone while potentially reducing the district’s M&O payroll cost because the position is budgeted at 80% of full-time equivalency in the first year.

Board members asked whether the 80% cap applied only to the contracted first year (staff confirmed it does) and discussed whether the starting percentage should be higher. Trustees and staff emphasized the policy is a pilot approach intended to retain experienced staff and preserve institutional knowledge while exploring potential savings; staff recommended starting conservatively at 80% with the option to revisit percentages in future years based on budget outcomes and participation.

The board approved the policy as a first implementation step. Staff said the contracted year will also allow employees to access benefits through the partner agency and that districts implementing similar programs sometimes adjust the percentage over time after monitoring costs and participation.