Step 1: In 2000 the average age is 50 for 100 teachers. By 2002, each person is simply 2 years older, so the average becomes \( 50+2=52 \), still for 100 teachers.
Step 2: When the 20 teachers averaging 60 years retire, the new average of the remaining 80 is a weighted average: \( \frac{100 \times 52 - 20 \times 60}{80} = \frac{5200-1200}{80} = 50 \).
Step 3: By 2005, 3 more years pass, so this group's average becomes \( 50+3=53 \). Merging in the 40 new teachers averaging 38 gives a combined average for all 120: \( \frac{80 \times 53 + 40 \times 38}{120} = \frac{4240+1520}{120} = \frac{5760}{120}=48 \).
Step 4: By 2008, 3 more years pass for everyone, so the final average is \( 48+3=51 \).
\[ \boxed{51 \text{ years}} \]