On July 1, 2001, Engrossed Substitute Senate Bill 5937 took effect. This is commonly known as the "Retire-Rehire" Bill. The effect of this new law is to increase the number of hours that public school retirees can work in Washington State school districts without a reduction in their retirement benefits. The intent of the law was to provide another means to help districts find qualified staff for hard-to-fill positions. It was not intended as a retirement enhancement bill and only changed the number of hours a retiree can work and continue to receive his/her retirement benefit.

To qualify the rehire, the retiree must be "retired" (as determined by DRS) from DRS-related employment for at least one full calendar month after the person's "accrual date". The DRS accrual date is the first day of the month following the last compensated day of the employment within an employee's contract year (e.g., an employee retires in June, DRS would normally determine his/her accrual date to be July 1—the former employee would be eligible for rehire August 1). During the one-month separation period, the retiree must continue to be completely separated (retired) from his/her former work/employment and may not be promised a job, show up on the job, or be paid for any work by the District. No agreements or assurances, written or oral, shall be made between any District representative and an employee considering retirement or a retiree before the expiration of the required separation period. No administrator or other employee is authorized to make any promises, "deal", or any other type of assurance relating to a possible rehire.

The law does not require the District to rehire any employee who retires. The decision about whom to hire or rehire for any given position will continue to rest with the District, consistent with applicable hiring procedures and bargaining agreements. A retired employee may apply for an open position and will be considered with all other qualified candidates. Retired former employees may apply, interview and/or otherwise be considered for an open position during their separation period or thereafter, but no promises, assurances or agreement to rehire such retirees may be made prior to expiration of the retirees' DRS separation period.

Interviews with retirees may not be held for any position prior to their accrual date. No retired former District employee may be considered for re-employment unless the position for which he or she applies was open to application from other qualified candidates.

A rehired retiree may not be awarded more than a one-year non-continuing contract as consistent with law. Once rehired, it is not required that the same position held by a retiree be re-posted each year; a rehired/retired employee can be re-employed on a year-to-year basis, provided the District retains the discretion in any year to reopen and post such a position.

All retired/rehired employees shall be afforded the full benefits and rights (with the exception of type of contract available) consistent with the position held in accordance with applicable collective bargaining agreements, board policies, and state law.

The District will not assume any responsibility for penalties incurred by any retiree hired under these procedures, including those who work or agree to work in excess of the number of hours allowed under ESSB 5937. Each retired/rehired employee shall be solely responsible for verifying and complying with all applicable DRS requirements concerning his/her eligibility for retirement and becoming fully retired, and the application of his/her retirement benefits upon any reemployment.