Pension rules encourage school retire-rehire deals

The number of STRS retirees still working for public schools and other institutions in the system has climbed steadily in the past decade, from 9,534 in 2000-01 to 15,857 last school year — a 66 percent increase. SOURCE: State Teachers Retirement System

Akron Beacon Journal, Dayton Daily News The number of STRS retirees still working for public schools and other institutions in the system has climbed steadily in the past decade, from 9,534 in 2000-01 to 15,857 last school year — a 66 percent increase. SOURCE: State Teachers Retirement System

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Superintendents and other high-paid employees earning at least $100,000 make up less than 2 percent of all rehired-retirees, but their numbers exploded from 19 in 2000-01 to 299 last school year. In addition to the biggest paychecks, this group also gets the highest pension benefits — an average of $80,542 a year. SOURCE: State Teachers Retirement System

Akron Beacon Journal, Dayton Daily News Superintendents and other high-paid employees earning at least $100,000 make up less than 2 percent of all rehired-retirees, but their numbers exploded from 19 in 2000-01 to 299 last school year. In addition to the biggest paychecks, this group also gets the highest pension benefits — an average of $80,542 a year. SOURCE: State Teachers Retirement System

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More than a quarter of Ohio's 614 district school superintendents are drawing full retirement benefits. So are more than half of the 56 county educational service center superintendents. In contrast, only about 12 percent of the total 122,000 retired members of the State Teachers Retirement System are still working in public education. SOURCE: State Teachers Retirement System

Akron Beacon Journal, Dayton Daily News More than a quarter of Ohio's 614 district school superintendents are drawing full retirement benefits. So are more than half of the 56 county educational service center superintendents. In contrast, only about 12 percent of the total 122,000 retired members of the State Teachers Retirement System are still working in public education. SOURCE: State Teachers Retirement System

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By Lou Grieco, Staff Writer Updated 11:53 AM Monday, June 21, 2010

Ohio’s taxpayer-funded public school pension system encourages double-dipping.

Career teachers and administrators have every incentive to retire in their 50s, tap the pension fund and return to work.

These deals, which are happening more and more, are often sold to the public as a cost-savings for their cash-strapped local districts, a win-win for taxpayers.

But an analysis by Ohio’s eight largest newspapers found retire-rehire deals, often called double-dipping, are not as taxpayer friendly as school officials make them out to be.

In most cases studied, superintendents made more in salary after their “retirements.” And even when salary reductions occur, the practice of retiring at an early age to engage in double-dipping serves as a drain on the State Teachers Retirement System, which has suffered investment losses and is seeking a taxpayer bailout.

If educators don’t retire at that relatively young age after 30 years of service, they are likely to receive far less income in both their working careers and retirement. The incentives are so great that STRS members accounted for three-quarters of the 32,000 state and local employees last year who collected $1 billion in pension payouts on top of their government paychecks.

One in four public school superintendents in Ohio’s 614 districts have retired but continue to work, often in the same district. At educational service centers, the number is one in two. Superintendents represent a fraction of the state’s double-dippers, but they stand out because of the size of their pensions. A superintendent who retires after 30 years at age 52 can fetch a pension package of  $1.6 million if he works until 65.

Dennis J. Willard of the Akron Beacon-Journal contributed to this report.

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