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Retire-rehire policy has pros and cons
(by Joan Demirjian - August 27, 2009)
Retire-rehire policy has pros and cons
By JOAN DEMIRJIAN
Bainbridge Township Trustees are considering a policy concerning rehiring employees that are retiring. It is done in other communities, as well as in school districts, but not everyone has established policies.
West Geauga School Superintendent Anthony Podojil said the district rehires when it saves money for the district and meets an appropriate need.
West Geauga has rehired retiring teachers on a case-by-case basis, and the regulations are established in their teachers' collective-bargaining agreement, he said.
"In administrative positions, we reduce the amount of benefits paid, as well as reduce the base pay," Dr. Podojil said. "We don't pay the retirement benefits with rehiring," he said.
"We rehired the band director at 70 percent of his salary, based on the collective bargaining, and we retained his expertise," he said. "When it works for the district, we consider it."
Dr. Podojil, who has been with the district for 15 years, was rehired after retirement, and he returned with a lower base pay. The board of education developed a performance merit component for his salary. The district does not pay into his retirement fund, he said. "I pay my own."
In one case, a middle school principal was brought back at a lesser pay to serve as an assistant for a few years in order to mentor the newly appointed principal, Dr. Podojil said.
"I think it depends on the circumstances," he said of rehiring after retirement. "It provides an opportunity to capitalize on expertise when it can be used."
South Russell Mayor Matthew Brett said the village has not had many incidents involving rehiring after retirement but did have two employees who retired from the police department and went into other village departments. In one case, the employee retired from the police department and went to the village service department, in a part-time position at a lower salary.
He said there are philosophical reasons why he does not favor a retire-rehire action. He leans toward not rehiring for the same position, Mr. Brett said.
"If someone is getting retirement and continuing to work, it could affect people coming in," Mr. Brett said. "A position doesn't free up."
Bainbridge Police Chief James Jimison retired and was rehired in 1995 by the township. He had other job opportunities at the time but stayed with the township, he said.
After retirement, his pension was frozen, and no one is paying into it, he said. "It never cost the township more."
The township can hire for less, but it goes back to the value of an employee who is retiring, Mr. Jimison said.
The term "double dipping," often used in retiring-rehiring cases, is a misnomer, he said. It pertains to someone who is scheduled to work a shift and works for another employee while working for himself at the same time, he said. "It's unethical and illegal." But it doesn't have anything to do with retiring and being rehired, he said.
Chagrin Falls Administrator Benjamin Himes said the village does not have any cases of rehiring after retirement. "We don't have a written policy for retiring and rehire," he said. "And we never had anyone retire and ask to be rehired."
Chagrin Falls hired Police Chief James Brosius after he retired from another community.
Usually, there is a negotiated agreement with the employee, and he agrees to take health benefits from his retirement package. Mr. Himes said.
"Typically, a lesser wage is negotiated and without benefits," he said. The employee receives health benefits through his or her retirement package. "It can save on wages," he said.
Russell Fiscal Officer Geraldine Heck said former Police Chief Robert Schneider, while employed by the township, retired and was reappointed at the same meeting and for the same salary.
The township also paid into his health insurance, she said. "We didn't save any money."
The township might have a good employee, and officials want to keep that person, Ms. Heck said. It can be a challenge to find someone to step into a position to run a department, she said.
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