• While politics have frequently hampered the efforts to reform state pensions systems, several states have successfully passed significant reform to their pension systems.
  • Half of all Americans who teach in public schools won’t qualify for even a minimal pension benefit, and less than one in five will remain long enough to earn a normal retirement benefit. As a result, while the system works for a few, it creates an enormous problem affecting many—especially given the sheer size of the teaching workforce.
  • Alexander Volokh argues that the California Rule protecting government-worker pensions is legally permissible, but should be rejected nonetheless as a matter of policy.
  • If districts adopted retirement systems where benefits accrued smoothly year after year and increased the proportion of teacher compensation that is paid directly as salary, they could offer a more attractive compensation package to most teachers without the need for higher taxes or reduced services.
  • While Ohio has removed some of the teacher pension funding burden from school districts (and students), it now falls heavily on the shoulders of Cleveland’s newest teachers. (In effect, they are now being taxed to pay for the benefits of other current and past employees.) This report projects the city’s future retirement obligations and illuminates how retirement reform can help solve the pension-funding problem—and some of the accompanying challenges.