Hiring Retired Teachers as Tutors

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.

Surcharges

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.

Benefits

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.