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ERIC Number: ED532770
Record Type: Non-Journal
Publication Date: 2012-Jun
Pages: 36
Abstractor: As Provided
Reference Count: 32
ISBN: N/A
ISSN: N/A
Who Benefits from Pension Enhancements? Working Paper 76
Koedel, Cory; Ni, Shawn; Podgursky, Michael
National Center for Analysis of Longitudinal Data in Education Research
During the late 1990s public pension funds across the United States accrued large actuarial surpluses. The seemingly flush conditions of the pension funds led legislators in most states to substantially improve retirement benefits for public workers, including teachers. In this study we examine the benefit enhancements to the teacher pension system in Missouri. These enhancements resulted in large windfall gains for teachers who were close to retirement when the legislation was enacted. By contrast, novice teachers, and teachers who had not yet entered the labor force, were made "worse off". The reason is that front-end contribution rates have been raised for current teachers to offset past liabilities accrued from the enhancements. Other things equal, the teaching profession in Missouri is now less appealing for young teachers than it was before the pension enhancements were enacted. Pension-Wealth Calculations are appended. (Contains 2 figures, 7 tables and 31 footnotes.)
National Center for Analysis of Longitudinal Data in Education Research. American Institutes for Research, 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5000; Fax: 202-403-5454; e-mail: inquiry@caldercenter.org; Web site: http://www.caldercenter.org
Publication Type: Reports - Research
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: Institute of Education Sciences (ED)
Authoring Institution: Urban Institute, National Center for Analysis of Longitudinal Data in Education Research (CALDER)
Identifiers - Location: Missouri; United States
IES Funded: Yes
Grant or Contract Numbers: R305A060067