Late - career incentives, such as large salary increases or
backloaded retirement benefits, simply don't have the same potential to shift teacher retention rates as early - career investments.
In fact, teachers have more
backloaded retirement benefits than any other group of workers.
Unless teachers know, with absolute, 100 % certainty, that they're going to stay in the same pension system for their entire career, they would likely be better off in less
backloaded retirement plans that offer more retirement savings earlier in their career.
Findings suggest that if experienced educators did not face the pressure of
a backloaded retirement system with large peaks and valley, but were instead offered a smooth, steady benefit accrual, more teachers would stay in the classroom for longer.
Not exact matches
In previous work, we demonstrated that because most teachers are somewhat risk averse and likely will not work under a single
retirement plan for their entire careers, entering teachers should strongly prefer earning
retirement benefits more evenly than they do under current
backloaded plans.
Because the current
backloaded system provides greater
retirement compensation for older teachers by decreasing the
retirement compensation of younger teachers, paying a large premium for experience may not be the most equitable way to compensate teachers.
In a traditional defined benefit plan, benefits are heavily
backloaded; teachers receive minimal benefits in their early years but quickly earn substantial benefits as they near their plan's prescribed «normal
retirement age.»