Bayou Blues: How Louisiana's Retirement Plan Hurts Teachers and Schools

Autor/inn/en	Aldeman, Chad; Aguirre, Paulina S. Diaz
Institution	Bellwether Education Partners; TeacherPensions.org
Titel	Bayou Blues: How Louisiana's Retirement Plan Hurts Teachers and Schools
Quelle	(2017), (24 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Teacher Retirement; Retirement Benefits; Teacher Salaries; State Programs; Debt (Financial); Retrenchment; Expenditures; Taxes; Financial Policy; Costs; Educational Trends; Louisiana + Suchen Sie Ihr Suchwort? Retirement pay; Ruhegehalt; Lehrerbesoldung; Lehrervergütung; Regierungsprogramm; Ausgaben; Abgabe; Fiscal policy; Finanzpolitik; Cost; Kosten; Bildungsentwicklung
Abstract	Years of irresponsible budgeting practices have left the Teachers' Retirement System of Louisiana (TRSL) almost $12 billion in debt. Without significant reforms, Louisiana's pension problems are likely to get worse, with further negative consequences for workers and schools. This report shows that schools participating in the TRSL already must contribute more than 30 percent of each teacher's salary toward the state pension plan. The vast majority of this contribution goes toward paying down debt, not for benefits for current workers. As debt has grown, many communities have been forced to make difficult choices between raising taxes, reducing teachers' salaries and benefits, or making cuts to school-based programs such as art, music, and foreign languages -- all of which affect the quality of education. The state's school districts have already made noticeable cuts to their expenditures on instructional programs, textbooks and other school supplies, and special education services. In addition to its high costs, the plan also doesn't deliver adequate retirement benefits for all teachers. Moreover, Louisiana is one of 15 states that has chosen not to offer Social Security coverage to its teachers, leaving them solely dependent on their state pension. The good news is that it's not too late to fix the problems, and there are solutions that Louisiana could adopt or expand to help improve the financial stability of the pension system and offer all teachers a path to a secure retirement. These include: (1) Lowering the state's assumed discount rate on investment returns to more closely match the present market environment; (2) Treating the current pension debt as a legacy cost owed by the state, not as a tax on teachers' salaries; (3) Enrolling all new teachers in Social Security to provide at least a minimum floor of portable, progressive retirement benefits; and (4) Adopting a more portable retirement plan for new workers, which would be better for Louisiana's teachers and ensure that the state does not take on any additional debt going forward. (ERIC).
Anmerkungen	Bellwether Education Partners. e-mail: contactus@bellwethereducation.org; Web site: http://bellwethereducation.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01