Since state teacher pension systems are based on teachers' experience level, high turnover districts spend less on teachers' total contribution than low-turnover districts. Also, districts with high teacher attrition disproportionately serve low-income communities. As such, teacher pensions can exacerbate inequities in school funding.
Inequities in teacher salaries across districts are exacerbated by teacher pensions. While it is true that teachers with higher salaries pay more into the pension fund, the additional pension wealth they receive far outweighs the greater contributions they made to the fund during their tenure.
In a new report we modeled the wealth accumulation for teachers in West Virginia's pension fund, before and after its reform, as well as the intervening DC plan. We found that all of the plans were poorly constructed from the outset and fail to provide a significant retirement benefit to a majority of West Virginia’s educators