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Under a new contract effective Feb. 1, Seattle schools chief Larry Nyland will make $276,000 a year, roughly 2 percent more than his predecessor, José Banda.

The Seattle School Board approved the contract at its meeting Wednesday, a month after offering Nyland the job as the district’s fifth leader, counting interims, in a decade.

Nyland also will receive benefits worth about $55,000, similar to what Banda had before he left in July to lead the Sacramento City Unified School District in California. Nyland is also eligible for health benefits worth about $10,400.

The new contract will replace the unusual arrangement that Nyland, 66, has worked under since he joined the district as interim superintendent in August.

Each workday since then, he has been paid a flat $1,537.41.

District officials say that arrangement cost the district about $8,000 less than what it paid Banda. Nyland also benefited from the agreement, which essentially allowed him to receive money immediately that, under a more conventional contract, would have been tucked away in annuities or the state retirement system. If his contract had lasted a full year, that could have totaled about $50,000, depending on how many vacation days Nyland took.

Under the original agreement, Nyland earned nothing for vacation days, unlike Banda. His contract allowed him one paid sick day each month.

And Seattle Public Schools didn’t pay Nyland any more than it would have paid overall for Banda’s vacation, health benefits, pension and a special tax annuity, said district general counsel Ron English.

The arrangement also allowed Nyland, who came out of retirement to work in Seattle, to stretch his pension payments for longer than he could have under a conventional salaried contract, Nyland said in an interview. Since retiring from the Marysville School District in June 2013, where he was superintendent for nine years, Nyland has received about $7,000 in pension payments each month, according to state retirement records.

Under a state retirement rule meant to prevent retirees from receiving pension payments while working full time, Nyland will not receive his retirement benefits once he works 867 hours, or the equivalent of about five months full time.

His last reported salary in Marysville was $238,909, according to data from the Department of Retirement Systems.

Leah Todd: 206-464-8246 or On Twitter @leahktodd