A new elementary retention policy was implemented in the Austin Independent School District (AISD) in 1981-82. The AISD Board of Trustees requested a three-year study of the impact and effectiveness of the policy. This report describes results from the second year of the study, including the effect of the change in policy on staff development, retention rates, student achievement, and staff and parent attitudes. A summary provides a description of the policy, evaluation focus, results, and implications, focusing on the most important findings of interest to a general audience. Extensive appendices provide technical information on specific questions addressed, methods utilized, and results. These are designed to provide more detailed information and documentation for research and evaluation staff as well as those school district administrators and Board of Trustees members particularly interested in the retention study. (Author)