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ERIC Number: ED032632
Record Type: RIE
Publication Date: 1969-Feb-18
Pages: 9
Abstractor: N/A
Reference Count: 0
The Long-Term Adequacy of Public School Pension Plans.
Shapiro, Frieda S.
A serious problem for retired teachers is the decreasing buying power of their retirement benefit. Older teachers who have been retired for 10 years or more face serious economic problems because of low salaries in the past, weak benefit formulas, lost service credit by teachers who moved from one State to another during their teaching careers, and, for teachers under social security, the availability of social security coverage only since 1950. Some States have adopted methods to cope with the impact of rising living costs on the retirement income of teachers. These include: (1) Special adjustments by State legislatures, (2) cost of living adjustments, (3) automatic percentage increases, (4) retirement benefit adjustments when salaries of active employees rise, (5) excess interest or earnings supplements, and (6) variable annuities. Although there has been progress in the past 10 years, a correcting mechanism is needed to provide for continuous adjustments in postretirement income to minimize the effects of inflation on the purchasing power of retired persons living on fixed incomes. (Author/MF)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A
Note: Paper presented at the Annual Meeting of the Amer. Assn. of Sch. Administrators (101st, Atlantic City, N.J., Feb. 18, 1969).