In April, Clay Community School Superintendent Dan Schroeder asked the school board to transfer $2 million from the corporation's General Fund to its Rainy Day Fund.
The reasoning, he said, was so unfunded retirement liability could be covered.
On Thursday, the board approved to move the money from the General Fund to the Rainy Day Fund and to amend the policy to extend appropriations to go toward early retirement.
The board voted 6-0 on the measure. Board member Ted Jackson did not attend Thursday's meeting.
At its April meeting, CCS Chief Financial Officer Mike Fowler said the corporation had more than $4.5 million in unfunded liability for corporation employees.
The money, Fowler said, came out of the General Fund as "normal operating expenditures."
At the April meeting, Fowler said in 2007, the corporation spent more than $655,000 in retirement benefits, giving the corporation reason to approve the measure to move the money in order to cover retirement benefits.
On Thursday, Schroeder continued the explanation.
"We find ourselves a little behind the 8-ball," he told the board. "We know we've got to pay these dollars out regardless."
Administration officials said they believed the $2 million in addition to $600,000, which is already in the Rainy Day Fund, would enable the corporation to cover unfunded retirement liability for approximately 10 more years, but wouldn't eliminate the unfunded liability completely.
Schroeder said past boards had the option of selling pension bonds to cover costs but did not "buy out all of the unfunded liability at that time," leaving the current board in the situation it is in.
Meanwhile, board member Len Fischer attended his final meeting Thursday.
Fischer did not seek reelection this year and will not be able to attend the board's June meeting, which is scheduled for 7 p.m., June 5.
Fischer's family was in attendance Thursday and the corporation presented him with a plaque for his 12 years of service.
"We're going to miss those 12 years of experience. We're going to miss the knowledge and the professionalism," Schroeder said as he gave the plaque to Fischer.
Fischer's wife, Pam, was the first citizen to speak during the comments portion of the meeting, saying she and her family were proud of his service.
The remaining five board members in attendance echoed Schroeder's sentiments.
"Twelve years, that's a long time," board member Steve Grigsby said.
"I appreciate what Len has done in the last 12 years," Terry Barr added.
"This truly is the people's board," Fischer said. "I've served with an awful lot of board members.
"The last couple of years have been difficult and it makes it that much more rewarding when you're going to (leave)," Fischer continued to the laughter of other board members. "It has been a rewarding experience."