[iii] Teachers who leave the workforce often can not make up the lost benefits because benefit increases
from additional years of work are offset by fewer years of benefit receipt.
And
additional years of work ahead of claiming would help Kittle replace zero - and low - income years on her record from when she was a young mother.
Nor should
an additional year of work reduce pension wealth (net of employee contributions), as is the case in current teacher plans after a certain point, often at relatively young ages.
Nor should
an additional year of work reduce pension wealth, as is the case in current pension plans after a certain point in time, often at relatively young ages.
Each additional year of work should increase pension wealth in a fairly uniform way.
Figures 2a through 2e illustrate graphically the peaks, cliffs, and valleys in pension wealth accrual from
each additional year of work over the course of a teacher's career in five state systems.
Let's consider
an additional year of work.
The state should ensure that pension systems are neutral, uniformly increasing pension wealth with
each additional year of work.
The preceding examples show that two different people with the same amount of earnings in
an additional year of work can see a different impact on their benefit calculation.
As a practical matter, anyone who is thinking about this issue of how
an additional year of work will affect social security benefits is in either the second tier, where the 32 % rate applies, or the third tier, where the 15 % rate applies.