The "Critical Shortage" Full-Time Employment Exception
If your district declares a critical shortage of either certificated or non-certificated employees, you can hire up to 10% of the certificated (or non-certificated) staff, not to exceed five individual PSRS retirees to teach, or five individual PEERS retirees to work, for up to two years under this provision. The two years of employment do not have to be consecutive – there can be breaks in the employment. However, the total time worked by each retiree cannot exceed two years at all employers. The retired members employed under this provision continue to receive benefits, but do not contribute to PSRS/PEERS or earn credit.
By law, districts cannot use the “Critical Shortage” Full-Time Employment Exception to fill the position of superintendent.
In order to employ retirees full-time under this provision, the employer must:
- Not have offered early retirement incentives for either of the previous two school years,
- Post the vacancy or vacancies for at least one month,
- Solicit applications through the local newspaper, other media, or teacher education programs,
- Make a good faith effort to fill positions with non-retired employees,
- Determine that there is an insufficient number of eligible applicants for the
advertised
position(s), and - Declare a shortage of certificated or non-certificated employees.
PSRS/PEERS will require you to certify in writing that you have met the requirements to hire a specific individual under the “Critical Shortage” Full-Time Employment Exception.
During the two years of critical shortage employment, employer contributions must be made to PSRS/PEERS on all compensation earned, including employer paid medical insurance premiums and such items as additional duties.

