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ERIC Number: EJ1114463
Record Type: Journal
Publication Date: 2016
Pages: 33
Abstractor: As Provided
ISSN: ISSN-1557-3060
Pension Choices and the Savings Patterns of Public School Teachers
Goldhaber, Dan; Grout, Cyrus
Education Finance and Policy, v11 n4 p449-481 Fall 2016
This paper examines the savings behavior of public school teachers who are enrolled in a hybrid pension plan that includes a defined contribution (DC) component. Few states have incorporated DC features into teacher pension systems and little is known about how providing teachers with greater control over deferred compensation might affect their savings behavior--an important determinant of retirement security. We find the retirement savings choices of teachers--how much they opt to contribute to a DC retirement account--to be generally consistent with that of their peers in the private sector. In particular, age and salary are positively correlated with contribution rates, and contribution rates increase with teaching experience. Importantly, our analysis of retirement wealth suggests that Washington's hybrid plan is likely to provide a level of retirement security for a typical teacher that is comparable to or greater than that provided by the state's pure defined benefit plan.
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Washington
Grant or Contract Numbers: N/A