Q: We want to hire a retired teacher to tutor students in math about three days a week for a couple of hours. What pay and benefits requirements apply to this situation?
A: Since the job assignment is as a tutor, the district is free to pay whatever it wants as long as it pays at least the federal minimum wage of $7.25/hour.
The Teacher Retirement System of Texas (TRS) surcharge paid by TRS-covered employers for rehired retirees doesn’t apply if the person doesn’t work more than half-time, defined as four hours each workday, Monday through Friday, or no more than the total number of hours allowed for the calendar month in any arrangement or schedule. (34 TAC § 31.14)
If the person retired after September 1, 2005, and works more than half-time in any month, the TRS surcharge applies for that month.
Other requirements include income tax withholding and payment of Medicare taxes, even for those who work less than half-time.
As a cautionary note, retirees working more than half-time are considered full-time for TRS purposes, and must have a 12 consecutive-calendar-month break in service or they will lose the annuity payment each month they work full-time unless retired before January 1, 2011.
The retiree is entitled to all other benefits as other tutors and part-time employees who work a similar schedule. If the tutor works a regular schedule for the entire year, he or she would be entitled to state personal leave. The amount of leave granted would be pro-rated based on the individual’s schedule.
Luz Cadena has worked as a compensation consultant with HR Services since 2006. Prior to TASB, she worked for a Central Texas ISD for eight years in the positions of compensation analyst, compensation coordinator, and director of compensation.
Cadena earned an associate degree in business administration from New Mexico State University, holds a bachelor’s degree in business management from Concordia University in Austin, and is a certified compensation professional (CCP).
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