How Pensions Contribute to the Premium Paid to Experienced Public School Teachers

Datos Bibliográficos

ID9734815
AutoresJosh B Mcgee (0000-0003-2068-2072, Arnold Ventures, autor de correspondencia), Joshua B McGee (Laura and John Arnold Foundation, Houston, TX), Marcus A Winters (0000-0002-1201-6777, Boston University)
Año2017
Volumen46
Número5
Páginas250-258
Fecha de publicación2017-06-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEducational Researcher (JOURNAL)
Identificadores de la revistaISSN: 0013-189X • E-ISSN: 1935-102X
EditorialAmerican Educational Research Association (AERA) (PUBLISHER)
DOI10.3102/0013189x17721906
OpenAlexW2774407431
IdiomaEN
Citas recibidas3
Referencias citadas17

Many argue that public school systems should stop linking teachers’ salaries so closely to their years of experience. However, the effect of deferred retirement compensation on the premium paid to experienced teachers has, to date, been underappreciated. To shed more light on this issue, we calculate the total compensation earned by teachers in New York City and Philadelphia from both salary and deferred retirement compensation under each system’s currently operating defined-benefit plan. Retirement compensation in both cities is back-loaded, which substantially increases the premium paid to highly experienced teachers. In late-career years, teachers often earn a larger compensation premium from the accrual of pension benefits than from salary. We show that cash-balance retirement plans, which are less back-loaded, would substantially reduce experience premiums without reducing the total compensation for the average entering teacher

Accrual · Actuarial science · Balance (ability · Business · Cash · Compensation (psychology · Demographic economics · Earnings · Economics · Incentive · Labour economics · Merit pay · Pension · Salary · Finance · Higher Education Research Studies · Innovations in Educational Methods · Psychology · School Choice and Performance · Social Psychology