October 2018

Most public school teachers are enrolled in a pension plan, but that doesn't mean they'll ever actually receive a pension, or that it will be a good one.
There’s a common misconception that teachers’ retirement plans are gold-plated, extremely generous options. And for a very small pool, they do provide a secure retirement. But that’s not the case for the majority of teachers. To illustrate this, we dug into a sampling of states to see how they measure up, and ran the numbers to see if an alternative plan design might serve more of their workforce.
Teacher pension funds are complicated and can be difficult to understand. In fact, Arizona's teacher pension plan is particularly complicated. This post explains how the system works and explains how it affects teachers' retirement.
Contrary to the popular perception of teachers having "Cadillac" health care benefits, those costs are mainly driven by differences in coverage across different types of employees, not the generosity of the underlying benefits.