Planning To Retire at the End of the Fall Semester? Don’t Forget To Tie Up Some Loose Ends.

Many educators find it convenient to schedule retirement at the end of the calendar year. Retiring at this time may be a good transition point for another educator to take over for the spring semester and will generally entitle the educator to a year of retirement credit. However, before you take this action, you need to be aware of a few things, especially if you work for a school district and hold a contract under Chapter 21 of the Texas Education Code. 

For one thing, if you are expecting a Teacher Incentive Allotment (TIA) payment from your district, you should review your district’s TIA spending plan. TEA gives districts flexibility on distributing TIA funds, and many districts use them as a tool to promote teacher retention. If your district has such a policy, resigning early could disqualify you from a TIA payment you would have otherwise received.

Resigning early might also impact your retirement income because the partial year would not count as one of your five highest years of salary. Speaking with a TRS retirement counselor can help you sort out your future benefits.

Additionally, if you have a Chapter 21 teacher contract, you will need to obtain a release from your contract to avoid the risk of a contract abandonment complaint to the State Board for Educator Certification (SBEC). Educators may exit contracts on their own without board permission no later than 45 calendar days before the first school day of the academic year. Once this deadline passes, educators under Chapter 21 employment contracts should complete their contracts unless they can exit due to “good cause” and/or obtain a release from the school district’s board of trustees. Good cause reasons for breaking a contract are factors beyond an educator’s control that prevent the educator from fulfilling contractual obligations. SBEC notes the following as good cause factors:

• Serious illness or health condition of the educator or a close family member of the educator;
• Relocation to a new city as a result of change in the employer of the educator’s spouse or partner who resides with the educator;
• Significant change in the educator’s family needs that requires the educator to relocate or to devote more time than allowed by current employment; or
• The educator’s reasonable belief that the educator had written permission from the school district administration to resign (19 Tex. Admin. Code § 249.17(d)).

Unfortunately, retirement is not considered a good cause reason for breaking a contract. However, an educator may seek a contract release from the school district’s board of trustees as this entity has the right to grant releases per the Texas Education Code. Some school boards will grant this same authority to superintendents, human resources directors, and—in rarer instances—principals.

If a release is granted, an educator may leave without the risk of any penalty. If an educator breaks a contract without board permission, the school district administration has the right to report the educator to SBEC alleging contract abandonment. SBEC investigators can impose sanctions as well, including a one-year suspension of certification.

If you are considering retiring during the school year, please seek a release from your contract that coincides with your expected retirement date. The more notice you can provide your school district, the better the odds that you will receive a contract release. Otherwise, you may need to complete the contract term to avoid a contract abandonment complaint.