A recent «Policy Memorandum» from the Economic Policy Institute («Making Mountains Out of Molehills:
Do Teacher Pensions Create «Peculiar Incentives» for Retirement?»)
Why
do teacher pensions appear to fail the equal pay for equal work test?
Not exact matches
Some
pensions — including those for many government employees,
teachers and railroad employees — don't pay into Social Security.
We have strong pools of capital here at home between the Canada
Pension Plan Investment Board, the Caisse de dépôt et placement
du Québec, the Ontario
Teachers»
Pension Plan and others.
Public opinion is likely to be split, but any suspicion that
teachers are ignoring the plight of those in the private sector who don't have any
pension scheme at all could pose problems for the NUT.
The mailer mentions a «
teachers union,» but doesn't specify whether that means NYSUT or UFT, that is «attacking Senator Klein because he put kids first rather than boosting their
pensions and increasing their salaries,» adding:
Anti-tax cap groups, including the state United
Teachers, are disappointed in the Democratic - led Assembly's version of the cap, which keeps the 2 percent ceiling on the growth of taxes, but
does include some narrow exemptions for
pensions
Christine Blower, General Secretary of the National Union of
Teachers, the largest teachers» union, said: «This survey shows that NUT members do not accept the Government's arguments for reducing teachers» p
Teachers, the largest
teachers» union, said: «This survey shows that NUT members do not accept the Government's arguments for reducing teachers» p
teachers» union, said: «This survey shows that NUT members
do not accept the Government's arguments for reducing
teachers» p
teachers»
pensions.
Do you support amending or repealing the Triborough Amendment to to give school districts more leverage with
teachers unions in negotiating salaries and health care and
pension benefits?
UFT President Michael Mulgrew praised the vote by the three
teacher members of the New York City
Teachers» Retirement System to sell the $ 13.5 million
pension fund holdings in publicly traded securities of gun and ammunition manufacturers as «the right thing to
do» in the wake of the December school shootings that left 20 children and six adults dead in Newtown, Conn..
That doesn't include the approximately 3,000 retired school administrators and
teachers who also qualified for
pensions of $ 100,000 or more, but who are in a separate
pension system.
And the TUC says nurses,
teachers and local government employees are now paying more on average towards their
pensions than they
did before reforms.
But
pensions do little to incentivize early career
teachers to continue teaching, and instead punish
teachers with fewer years of experience.
However, the loss from mobility continues to widen in the following years, as the
teacher who stays becomes eligible for earlier and earlier retirement, while the
teacher who moves
does not earn enough service credit to advance the
pension from age 60.
These types of
pension plans
do offer
teachers some advantages.
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.
Graded vesting
does not exist in
teacher pension plans today, but it is widespread in the private sector.
For the vast majority of
teachers, the prospect of a
pension, no matter its size,
does not appear to provide a reason to stay or go.
Research
does reveal one moment in a
teacher's career when
pension rules can influence her decision: when she is at, or just about to reach, retirement age.
Depending on the state, two - thirds to three - quarters of
teachers don't stay long enough to benefit from the
pension system.
Pension plans
do appear to exert a limited «pull» effect that keeps some late - career
teachers on the job as they near retirement.
Again, though, the new ESEA should allow states great latitude in structuring that right (for instance, they could give that choice to individual
teachers, or allow a school - by - school vote); regardless, each state will have to figure out what to
do with its
pension obligations to
teachers who switch to the new contract.
Teacher pension plans
do work well for certain groups of
teachers who stay in the profession for their entire career.
For example, since 2002, Florida has offered new
teachers a choice between these two types of plans; those who
do not choose are enrolled in the traditional
pension plan.
States» own assumptions show that on average, more than half of
teachers do not receive any employer
pension benefits because they leave before they are eligible.
In studying the simple and immensely practical question of how charter schools handle
teacher retirement when state law allows them to opt out of the state's
pension system, Podgursky and Olberg examine just how much rethinking charters are
doing when it comes to the familiar, expensive, and binding routines of schooling — and what lessons that holds for schools more broadly.
Similarly, state plans themselves
do not assume that qualifying for a
pension has an effect on
teacher retention.
On the back end of a
teacher's career, other researchers have found that
pensions do act as a retention incentive, but only for
teachers who are very close to reaching retirement age.
Even among those who
do vest, the average
pension is not that great unless
teachers stay in the same state for 25 or 30 years.
Contrary to the theories of
pension plan advocates, shifting to alternative retirement plans that didn't push out veteran
teachers would be better for students.
Even
teachers who
do qualify for a
pension after just five years aren't likely to see much in benefits because benefits are heavily backloaded.
The Winter 2010 issue of Ed Next included a study by Bob Costrell and Mike Podgursky that showed how
teacher pensions concentrate benefits on
teachers who spend their entire careers in a single state, penalizing younger
teachers, who change jobs and move more often than
did previous generations.
The State
Teachers Retirement System of Ohio, one of the nation's largest pension programs for teachers, didn't make enough return on its investments in the last fiscal year to provide the bonus, said Herb Dyer, the fund's executive d
Teachers Retirement System of Ohio, one of the nation's largest
pension programs for
teachers, didn't make enough return on its investments in the last fiscal year to provide the bonus, said Herb Dyer, the fund's executive d
teachers, didn't make enough return on its investments in the last fiscal year to provide the bonus, said Herb Dyer, the fund's executive director.
There are several possible explanations for our findings, including that (a)
teachers do not greatly value, and / or
do not fully understand the values of their
pensions, and (b) the policy was poorly targeted.
Conceptually, a
teacher facing a 10 - year vesting requirement likely
does not say to herself, in her 3rd year of teaching, «well, I don't like teaching here very much, but if I just stick this out for seven more years, at least I'll qualify for a minimal
pension!»
When we
did that in our 2011 analysis, we found that
pension costs for
teachers were worth not the 11 percent of wages reported by the ECEC but a remarkable 32 percent of wages.
And since we don't want to get
pension and
teacher union officials in trouble, we have a modest proposal, inspired by Professor Alfred Kahn, President Carter's anti-inflation czar.
When a
teacher becomes a principal, she
does not give up her
pension so long as she remains in the same retirement system.
On average,
teachers enjoy considerably larger
pension benefits and health - care packages than
do comparable professionals in the private sector, a point of contention in recent policy debates.
Teachers qualify for very little in the way of retirement benefits during the first half of their career because
pension benefits don't accrue evenly.
Just because a
teacher has the option to get a
pension at some point down the road doesn't necessarily mean she should take it.
Budgetary shortfalls, school district bankruptcies,
teacher and administrator layoffs, hiring and salary freezes,
pension system defaults, shorter school years, ever - larger classes, faculty furloughs, fewer course electives, reduced field trips, foregone or curtailed athletics, outdated textbooks,
teachers having to make
do with fewer supplies, cuts in school maintenance, and other tales of fiscal woe inevitably captivate the news media, particularly during the late - spring and summer budget and appropriations seasons.
Early in a HISD
teacher's career, rising compensation comes entirely from progression up the salary ladder — as is common across the U.S., HISD
teachers do not vest into the
pension plan for ten years and
do not become eligible for meaningful retirement compensation for years after.
Teachers have no more say over their
pensions than the typical voter
does.
Teachers do not earn
pension benefits equally over their careers.
That argument may sound reasonable, but it's just as plausible that
teachers don't know about or fully appreciate the thousands of dollars states and districts spend on their
pensions each year.
Some districts
do negotiate over who pays the contribution — the district or individual
teachers — but under statewide
pension systems, decisions about benefit structures and contribution levels are all made by state legislators, state comptrollers or treasurers, or even unelected
pension boards.
*
Pensions do offer a retention incentive to late - career
teachers.
They also tend to have experience of the
Teachers Pension scheme and Local Government
Pension schemes and will also
do all the administration associated with the
pensions.
The NUT says that agencies make large profits from state funded schools, while many supply
teachers earn less than they
did three years ago with no entitlement to sick pay, maternity leave or
teachers pensions.