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.
One of the most common teacher salary questions is whether or not teachers get paid over the summer months. So, do they? It depends. Teacher payroll schedules vary district-to-district: some allow workers to spread their 10-month salary over 12 months, while others don’t give any paycheck during the summer months, requiring teachers to budget, or in some cases, get a second job.
While traditional, back-loaded pension plans fall short of providing adequate retirement benefits to all members, there are better options. And, contrary to a public debate that often pits pensions against 401ks, there are other alternatives that would better balance the needs of employers and employees.
A new study provides evidence that teachers are not particularly sensitive to changes in retirement benefits. If anything, updating teachers’ retirement options could even free up resources to raise base salaries, which may ultimately affect the teacher workforce more than retirement benefits ever can.