Blog: Retirement Insecurity

Many teachers get worse benefits than those offered in the private sector.
A new paper looks at pension changes adopted by states during the recent recession and finds that new teachers face significant penalties based solely on the day they were hired.
Randi Weingarten, the President of the American Federation of Teachers, used her monthly paid advertisement in The New York Times to talk about retirement, but she didn't use the opportunity to call for better benefits for public school teachers.
School administrators should warn all new teachers about the significant savings penalty they face because of high mobility rates and long service requirements to qualify for a pension.
When a teacher leaves the classroom, she may also leave the state or district retirement system. As a teacher leaves, what happens to her pension contributions?
With all the noise about teacher pensions it’s interesting that Social Security receives so little attention. About 40 percent of teachers are not covered. Why not?
States may be getting a deal for their teachers. Among other trends, the teaching force is simultaneously becoming younger and less experienced. This translates to cheaper costs for the state, but at the price of teacher retirement security.
To better understand the issues around California’s pension plans, I spoke with Dave Low, the Chairman of Californians for Retirement Security.
For the average full-career state worker, traditional defined benefit plans are working quite well. But these are the relative winners of the pension lottery, and all other participants are losing out.
Pensions provide us with more than just financial data. Pensions also provide us with key information about teacher retention, reaching back for decades. In New York City, teachers do not remain in the profession as long as they did in the past. Instead of responding to this trend, the New York City teacher pension plan has become less generous to mobile teachers.