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ERIC Number: ED574278
Record Type: Non-Journal
Publication Date: 2016
Pages: 24
Abstractor: As Provided
Reference Count: 17
ISBN: N/A
ISSN: N/A
Pension Generosity in Oregon and Its Impact on Midcareer Teacher Attrition and Older Teachers' K12 Workforce Exit Decisions. CEDR Working Paper. WP #2016-5
Cahill, Kevin E.; Dyke, Andrew; Tapogna, John
Center for Education Data & Research
Oregon's Tier One Public Employees Retirement System (PERS) covered members prior to January 1, 1996. This "Issue Brief" documents the generosity of the money match provision under Oregon's Tier One plan relative to the Tier One defined-benefit formula, and relative to other plans in Oregon and Washington and to representative plans nationally. We then examine the extent to which Oregon's pension system impacted its K12 workforce, as greater pension generosity could incentivize longer tenures. In the case of Oregon's money match provision, however, the true magnitude of its generosity was largely unknown to teachers until just prior to retirement. As such, any economic incentives to promote longer tenure among midcareer teachers may have been muted, while the plan's generosity, once apparent just prior to retirement, created strong wealth effects that may have enabled earlier K12 exits. We find evidence for both of these outcomes. Midcareer quit rates in Oregon were unremarkable based on an analysis of teacher work histories in Oregon from 2000 to 2013. Further, based on an analysis of 8,621 teachers in Oregon who were aged 50 and older in 2000, our findings suggest that the generosity of Oregon's Tier One money match encouraged earlier departures from the K12 workforce, with teachers leaving, on average, one year earlier than what would have been expected under Oregon's defined-benefit plan formula. These findings suggest that pension generosity alone does not incentivize longer tenure--even in the extreme case of Oregon--as the true generosity of a plan must be known to employees throughout their careers to impact midcareer work decisions.
Center for Education Data & Research. 3876 Bridge Way North Suite 201, Seattle, WA 98103. Tel: 206-547-5585; Fax: 206-547-1641; e-mail: cedr@uw.edu; Web site: http://www.cedr.us
Publication Type: Reports - Research
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: Laura and John Arnold Foundation
Authoring Institution: Center for Education Data & Research (CEDR)
Identifiers - Location: Oregon; Washington