District reviews ESI retire-and-rehire option; staff say it saves money and retains experienced employees
Loading...
Summary
District HR and an ESI representative outlined a retire-and-rehire arrangement that lets ASRS retirees work for ESI and contract back to the district, currently involving 14–15 employees with 10–11 more interested for 2025–26.
Stacy Almeras, the district’s executive director of human resources, and Becky Tomschewski, an ESI program representative, briefed the Tolleson Union High School District Governing Board on the district’s retire-and-rehire arrangement administered through ESI.
Almeras said ESI allows employees who retire from the Arizona State Retirement System (ASRS) to return to district work through a third-party employer (ESI) and avoid ASRS post-retirement work limitations. "Our ESI employees are allowed to basically retire one school year, become an ESI employee, and return right back into their same position," Tomschewski said.
Tomschewski described cost and pay mechanics the presenters said apply under the district’s current parameters. She said the district’s approach is to pay returning employees 85% of their pre-retirement salary or their starting placement salary — whichever is higher — plus 100% of any supplemental pay (for coaching, tutoring or additional assignments). The district’s ESI fee was presented as 18.5% of gross wages; the alternate contribution rate (ACR) that replaces the ASRS employer contribution was described as 9.75% for school year 2025–26 versus an ASRS employer rate cited in the presentation of 12%.
Almeras said the program retains benefits common to district employment: time-off accruals are tracked in the ESI portal, supplemental pay and performance pay are paid, and employees may receive the district’s performance-based payment at year-end if they meet the criteria. Tomschewski added that because retirees are no longer contributing to ASRS, their combined pension plus ESI wages can increase their monthly income after retirement.
Almeras said 14–15 employees are currently on the program and that 10 or 11 additional employees had expressed interest for school year 2025–26. Board members asked for clarification on counts and timelines for rehire start dates; Almeras explained some staff will return on staggered dates (for example, a February rehire vs. July start) depending on their retirement date.
Board members thanked HR for the presentation and asked for continued updates. No formal policy changes or contracts were approved during the presentation; staff said the district chooses program parameters (salary percentage, supplemental-pay treatment, and fees) on a district-by-district basis.
