Even though they’re officially retired, two Oxford Schools administrators continue to work for the district as contracted employees providing both valuable experience and a significant cost savings.
‘It’s not an uncommon phenomenon, but it’s new to Oxford,? said Oxford Superintendent Virginia Brennan-Kyro, commenting on the district’s Retire/Rehire Program.
Dr. Jerry Oermann, director of special education and principal of the Crossroads for Youth school, and Lydia Engel, principal of Daniel Axford Elementary, both retired from their jobs last year.
But the pair continues to work for the district through a company called Professional Contract Management, Inc. (PCMI)
Based in Marine City and founded in 1995, PCMI is the largest educational leasing service in Michigan, providing contracted employees to approximately 80 school districts thereby helping them save money and fulfill unique needs.
‘Many of the school districts throughout Michigan are doing this as a way to save money,? Brennan-Kyro said. ‘It’s a common service that other districts have been using. It’s been around for a long time.?
The way it works is simple.
When Oermann retired in June 2006 and Engel in December 2006, they continued to work at their jobs, but as contracted employees leased from PCMI.
‘They work for another company and we contract them back, but because they’re not Oxford employees we’re not paying for their health care, we’re not paying for their FICA, we’re not paying those associated costs,? Brennan-Kyro explained.
Oermann’s contracted for a year, which saves the district $19,146 by not having to pay for his FICA, retirement and health, optical and dental insurances, according to Assistant Superintendent Nancy Kammer.
Engel’s contracted for a half-year and that’s saving the district $13,500 in benefits it’s no longer responsible to pay, Kammer said.
‘It does save money and you still get good, experienced administrators,? Brennan-Kyro said. ‘It’s like a win-win for both the employee and the school district.?
Given qualified candidates for positions like those held by Oermann and Engel are in short supply, it’s a bonus for the district to be able to keep ‘good, trusted employees for another year.?
‘A lot of times the state really encourages it, especially when you have somebody who’s on the critical shortage list,? Brennan-Kyro said.
The superintendent stressed that the Retire/Rehire Program’s use of contracted employees from a private company should not be confused with the concept of privatization.
‘Those are two totally different things,? she said.
Privatization ‘typically involves an entire employee group,? not individuals like central office or building administrators.
‘When you privatize you hire an outside company to come in with their own employees to provide a service,? Brennan-Kyro explained. ‘The big difference is you’re not using the same people again. You’re using that company’s employees. It’s not the same people who have been working here, who know the system.?