Benefit or Burden? On the Intergenerational Inequality of Teacher Pension Plans. Working Paper 148

Autor/inn/en	Backes, Ben; Goldhaber, Dan; Grout, Cyrus; Koedel, Cory; Ni, Shawn; Podgursky, Michael; Xiang, P. Brett; Xu, Zeyu
Institution	National Center for Analysis of Longitudinal Data in Education Research (CALDER) at American Institutes for Research
Titel	Benefit or Burden? On the Intergenerational Inequality of Teacher Pension Plans. Working Paper 148
Quelle	(2016), (31 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Zusatzinformation	ORCID (Goldhaber, Dan) ORCID (Grout, Cyrus) Weitere Informationen
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Public School Teachers; Retirement Benefits; Teacher Retirement; Age Differences; Salary Wage Differentials; Generational Differences; Data Analysis; Policy Analysis; State Policy; Missouri; North Carolina; Tennessee; Washington + Suchen Sie Ihr Suchwort? Retirement pay; Ruhegehalt; Age; Difference; Age difference; Altersunterschied; Auswertung; Politikfeldanalyse
Abstract	Most public school teachers in the United States are enrolled in defined benefit (DB) pension plans. Using administrative micro data from four states, combined with national pension funding data, we show these plans have accumulated substantial unfunded liabilities -- effectively debt -- owing to previous plan operations. On average across 49 state plans, an amount that exceeds 10 percent of current teachers' earnings is being set aside to pay for previously-accrued pension liabilities. To the extent that the costs of the unfunded liabilities drag on teacher compensation, they may exacerbate problems of teacher recruitment and retention. We briefly discuss three policy changes that could end or reduce the accumulation of unfunded liabilities in educator pension plans: (1) transition teachers to defined-contribution retirement plans; (2) transition teachers to cash-balance retirement plans; and (3) tighten the link between funding and benefit formulas within the current defined-benefit structure. (As Provided).
Anmerkungen	National Center for Analysis of Longitudinal Data in Education Research. American Institutes for Research, 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5796; Fax: 202-403-6783; e-mail: info@caldercenter.org; Web site: https://caldercenter.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01