Rethinking the Structure of Teacher Retirement Benefits: Analyzing the Preferences of Entering Teachers

Autor/inn/en	McGee, Josh B.; Winters, Marcus A.
Titel	Rethinking the Structure of Teacher Retirement Benefits: Analyzing the Preferences of Entering Teachers
Quelle	In: Educational Evaluation and Policy Analysis, 41 (2019) 1, S.63-78 (16 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0162-3737
DOI	10.3102/0162373718798488
Schlagwörter	Public School Teachers; Teacher Retirement; Retirement Benefits; Beginning Teachers; Teacher Attitudes; Preferences; Risk; New York (New York); Pennsylvania (Philadelphia) + Suchen Sie Ihr Suchwort? Retirement pay; Ruhegehalt; Junior teacher; Junglehrer; Lehrerverhalten; Risiko
Abstract	Most U.S. public school teachers participate in defined benefit retirement plans, which base benefits on years of service and their last few years of salary. These plans are often backloaded and include sharp economic incentives. We consider the implications of transitioning to a cost-equivalent defined benefit plan under which teachers would earn benefits more evenly across their careers. We show that new teachers who are risk averse would prefer the alternative plan. The magnitude is often substantial. For example, for an entering teacher the certainty equivalent for the CB plan is about 2.1 times the certainty equivalent for the respective FAS plan in New York City and 29 times larger than the respective heavily backloaded FAS plan in Philadelphia. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01