States Curbing 'Double Dipping' by Teachers

Many are requiring rehires to make contributions to pension fund

A practice once embraced by legislators to keep high-quality teachers and principals in their schools is coming under fire as a spate of laws have passed to restrict “double dipping” among educators.

A term used pejoratively by critics, double-dipping refers to policies that allow a public employee to retire, draw down a pension, and then be rehired—sometimes in his or her previous position.

To give a hypothetical example, a teacher who retires with full benefits at age 55 with 25 years of service and a final average salary of $65,000 a year would receive on the order of $32,500 a year in a typical teacher-pension plan. By double-dipping, such a teacher could net close...