Sentences with phrase «because pension formulas»

Because pension formulas are typically based on the employee's highest three or five years of salary, they should try to do everything in their power to make their peak earning years count.

Not exact matches

Current teacher pension plans back - load benefits to the last 5 to 10 years of service, mainly because benefit formulas are based on final average salary calculations that do not adjust for inflation.

This is a good thing for a principal's ability to lead a school, but makes his or her pension much more expensive because years spent teaching count toward pension benefit formulas.

Pension wealth is even more backloaded for school leaders because their salaries are higher than teachers and pension formulas only take into account ending rather than starting saPension wealth is even more backloaded for school leaders because their salaries are higher than teachers and pension formulas only take into account ending rather than starting sapension formulas only take into account ending rather than starting salaries.

These are extreme examples that can occur because traditional pension formulas rely so heavily on final salary and total service years, and many superintendents have accumulated prior service years as teachers or mid-level administrators to count toward a full career.

And because pension plans are based on a formula that factors in salary levels, employees with higher salaries (like district superintendents and administrators) tend to earn disproportionately large benefits compared to teachers.

CPS alleged that both the state school funding formula and the teacher pensions system are unconstitutional because they lead to the systematic underfunding of the education of low - income students and students of color.