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ERIC Number: ED509662
Record Type: Non-Journal
Publication Date: 2007-Apr
Pages: 33
Abstractor: As Provided
Reference Count: 20
ISBN: N/A
ISSN: N/A
Efficiency and Equity in the Time Pattern of Teacher Pension Benefits: An Analysis of Four State Systems. Working Paper 6
Costrell, Robert M.; Podgursky, Michael
National Center for Analysis of Longitudinal Data in Education Research, Paper accepted for presentation at the American Education Finance Association Annual Meetings (Baltimore, Maryland, March 23, 2007)
Defined Benefit pension plans often generate odd time patterns of benefits. One typical pattern exhibits low accrual in early years, accelerating in mid-late years, followed by dramatic decline, or even negative returns in years that are relatively young for retirement. We consider four states for specific analysis: Arkansas, Missouri, California and Massachusetts. There are interesting variations among these states' formulas, which affect the incentive to retire early. We identify key factors in the defined benefit formulas that drive such patterns and likely consequences for employee behavior. We examine the efficiency and equity consequences of these systems and lessons that might be drawn for pension reform. (Contains 1 table, 2 figures and 18 footnotes.)
National Center for Analysis of Longitudinal Data in Education Research. The Urban Institute, 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5739; Fax: 202-833-2477; e-mail: inquiry@caldercenter.org; Web site: http://www.caldercenter.org
Publication Type: Reports - Evaluative
Education Level: Adult Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Urban Institute, National Center for Analysis of Longitudinal Data in Education Research (CALDER)
Identifiers - Location: Arkansas; California; Massachusetts; Missouri
IES Funded: Yes
Grant or Contract Numbers: R305A060067; R305A060034