Better Benefits

After one of the worst decades in stock market history, the Great Recession has left nearly every state pension plan in a precarious position. Recently, the Pew Center on the States reported that 47 states owe more in pension obligations for current and future teacher retirees than they have on hand. Collectively, the gap between what states have and what they will need totals almost $500 billion. And with Americans living longer and teachers more likely to retire at a younger age, the challenge of paying for teacher retirements will only increase.

But the problems with teacher pensions are not just financial. And they do not just affect individual teachers and retirees. The way the plans are structured can negatively influence the teaching work force as a whole. At a time when improving the quality of classroom instruction is a national priority, key structural elements in teacher retirement plans impair the ability of schools to recruit, hire, retain, and compensate high-quality teachers and principals.

To learn more about existing teacher pension plans, how they affect retirement decisions, and options for aligning them with a changing teacher work force, read Better Benefits: Reforming Teacher Pensions for a Changing Work Force, a new report (.pdf) I co-authored with Education Sector co-founder and Bellwether Education co-founder and partner Andy Rotherham. Or, sign in and watch a brief on-demand webinar.

Tagged as: Defined Benefit Plan, Retirement Benefits, Teacher Pay, Teacher Pensions, Teacher Quality