Our County Treasurer has been to several seminars lately telling her that when we have an employee retire, the retiree and the elected employer must sign an affidavit to the effect that the employee intends to retire and that no agreement to rehire the employee on a contract or part time basis has been made. (Evidently, if this is signed, then the employee CAN be rehired on a part-time or contract basis with no ill-effects on the employee's retirement pay.)

Does anyone do this on a regular basis and know the law behind it, and if so, would you be willing to share a form?

There was an article in our Texas Co & Dist Retirement newsletter awhile back covering your question. A similar question is covered at their website. http://www.tcdrs.org/retiree_FAQs.asp

Found it! Thanks for the help. Looks like I'll have to create an agreement from scratch, but at least I know what to put in it.