Peaks, Cliffs, and Valleys: The Peculiar Incentives in Teacher Retirement Systems and Their Consequences for School Staffing
By Robert M. Costrell, M. Podgursky. Education Finance and Policy, 2009
114 citations recorded by the source corpus.
This article examines the pattern of incentives for work versus retirement in six state teacher pension systems. We do this by examining the annual accrual of pension wealth from an additional year of work over a teacher's career. Accrual of wealth is highly nonlinear and heavily loaded at arbitrary years that would normally be considered mid-career. One typical pattern exhibits low accrual in early years, accelerating in the mid- to late fifties, followed by dramatic decline or even negative returns in years that are relatively young for retirement. Key factors in the defined benefit formulas that drive such patterns are identified along with likely consequences for employee behavior. The authors examine efficiency and equity consequences of these systems as well as options for reform.
Subfields: Accounting, Demography, Gender Studies
View Paper: https://www.semanticscholar.org/paper/1d2685a39e964efa55ba46ef78b4cc7b8aa0eae2
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Demography
In Gender Studies
Citations in the corpus
- Does It Pay to Pay Teachers More? Evidence from Texas (2014, background): “Finally, because of the back-loaded nature of teacher retirement plans, the cost of turnover in terms of lost retirement benefits is higher formore experienced teachers (Costrell and Podgursky, 2010; Costrell and Podgursky, 2009).”