Because these withdrawal assumptions are tied to large financial decisions, pension plans conduct regular «experience studies» to check their assumptions and compare their expectations with
actual teacher turnover rates.
In order to determine how accurate those assumptions are, I looked at the assumed and
actual teacher turnover rates in New York City.
Not exact matches
Regardless of whether I use the pension plan assumptions or the
actual turnover rate, the lines show that half of all new
teachers will not reach ten years of service and will not qualify for a retirement benefit.
However, the strength of this preference depends on two things: the
actual difference in
turnover rates and the difference in effectiveness between an experienced and a novice
teacher.