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Full-Text Articles in Education
Examining Inequities In Teacher Pension Benefits, James V. Shuls
Examining Inequities In Teacher Pension Benefits, James V. Shuls
Education Reform Faculty and Graduate Students Publications
From funding to teacher quality, inequities exist between school districts. This paper adds to the literature on inequities by examining the impact of pension plan formulas on pension benefits. Using data from the salary schedules of 464 Missouri school districts, this paper analyzes how various final average salary calculations would impact the benefits of teachers in different districts. All of the schools in this analysis belong to Missouri’s Public Employee Retirement System, which is a defined-benefit pension plan. A teacher’s benefit in this plan is based on her years of experience and her final average salary. The system uses a …
Intergovernmental (Dis)Incentives, Free-Riding, Teacher Salaries And Teacher Pensions, Maria D. Fitzpatrick
Intergovernmental (Dis)Incentives, Free-Riding, Teacher Salaries And Teacher Pensions, Maria D. Fitzpatrick
Upjohn Institute Working Papers
In this paper, I document evidence that intergovernmental incentives inherent in public sector defined benefit pension systems distort the amount and timing of income for public school teachers. This intergovernmental incentive stems from the fact that, in many states, local school districts are responsible for setting the compensation that determines the size of pensions, but are not required to make contributions to cover the resulting pension fund liabilities. I use the introduction of a policy that required experience-rating on compensation increases above a certain limit in a differences-in-differences framework to identify whether districts are willing to pay the full costs …