Board approves retire-and-rehire contracts through third‑party contractor for returning employees

The Joseph City Unified School District board approved requests from several employees to retire and return to work next year under contract with a third‑party provider, ESI.

District staff explained the mechanics: under the arrangement the district would pay the gross contract amount and an estimated 18–19% overhead to ESI to cover benefits and administration, while removing district retirement-contribution obligations and some insurance costs that would shift to the contractor arrangement. Administrators said employees had been counseled by financial advisors and had submitted written notices indicating their intent.

Board members pressed for written, final figures before the paperwork deadline (staff said Arizona State Retirement System paperwork typically begins three months in advance) and asked whether the rehired employees would receive the same gross pay. The superintendent and finance staff said the gross contract amounts would mirror what employees would have received on payroll and that ESI would deduct its management fee and the contractors would manage benefits.

Because personnel and contract terms were under discussion, the board voted to go into executive session to review details and later reconvened. After the executive session the board moved to approve the retire-and-rehire requests; the motion passed unanimously.

What it means: The action allows eligible staff to retire (triggering retirement system processes) and return as contractors for the 2025–26 year under the ESI arrangement. Administrators said they will bring final contract paperwork and exact dollar figures back to the board and that employees will be required to return to the board a year from now if they continue under the third‑party contract.