Pensions and Late-Career Teacher Retention

2021 ◽  
Vol 16 (1) ◽  
pp. 42-65
Author(s):  
Dongwoo Kim ◽  
Cory Koedel ◽  
Wei Kong ◽  
Shawn Ni ◽  
Michael Podgursky ◽  
...  
Keyword(s):  
Pension Plans ◽  
Public School Teachers ◽  
Retirement Plans ◽  
Qualified Teachers ◽  
Math Teachers ◽  
Long Run ◽  
Rule Changes ◽  
Incentive Policies ◽  
Low Costs ◽  
Career Teacher

Public school teachers retire much earlier than comparable professionals. Pension rule changes affecting new teachers can be used to close this gap in the long run, but any effects will not be observed for decades and the implications for workforce quality are unclear. This paper considers targeted incentive policies designed to deter retirement among senior, experienced high-need science and math teachers, as a policy to staff classrooms with qualified teachers and improve workforce quality. We use structural estimates from a dynamic retirement model to simulate the workforce effects of targeted late-career salary bonuses and deferred retirement plans (DROPs) using administrative data from Missouri. Although both policies produce additional teaching years at relatively low costs, by forcing teachers to reveal work–retirement preferences, DROPs generally yield incremental teacher years at lower cost per year. More generally, this work highlights the utility of using structural retirement models to analyze fiscal and workforce effects of changes to public sector pension plans, since the effects of pension rule changes cumulate over many years.

Teacher pension enhancements and staffing in an urban school district

2021 ◽  
pp. 1-21
Author(s):  
Shawn Ni ◽  
Michael Podgursky ◽  
Xiqian Wang
Keyword(s):  
School District ◽  
Structural Model ◽  
Urban School ◽  
Urban School District ◽  
Retirement Plans ◽  
Teacher Retirement ◽  
Long Run ◽  
Retirement Behavior ◽  
Before And After ◽  
Rule Changes

Abstract Many states enhanced benefits in teacher retirement plans during the 1990s. This paper examines the school staffing effects of one such enhancement in a major urban school district with mostly high poverty schools. Pension rule changes in 1999 for St. Louis public school teachers resulted in large increases in pension wealth for active teachers, as well as a powerful increase in ‘push’ incentives for earlier retirement. Simple descriptive statistics on retirement patterns before and after the enhancements suggest much earlier retirement resulted. Shorter teaching spells imply a steady state with more teacher turnover and a larger share of novice teachers in classrooms. To better understand the long-run effects of these changes and alternative policies, the authors estimate a structural model of teacher retirement. Simulations of retirement behavior for representative senior teachers point to shorter completed teaching spells and earlier retirement age as a result of the enhancements. By contrast, moving from the post-1999 to a DC-type plan would extend the teaching career of a representative senior teacher by roughly two years.

Pension Enhancements and the Retention of Public Employees

ILR Review ◽  
2016 ◽  
Vol 70 (2) ◽  
pp. 519-551 ◽  
Author(s):  
Cory Koedel ◽  
P. Brett Xiang
Keyword(s):  
United States ◽  
Public Sector ◽  
Employee Retention ◽  
Cost Effective ◽  
The United States ◽  
Pension Plans ◽  
Public Employees ◽  
Public School Teachers ◽  
School Teachers ◽  
Public Pension Plans

The authors use data from workers in the largest public-sector occupation in the United States—teaching—to examine the effect of pension enhancements on employee retention. Specifically, they study a 1999 enhancement to the benefit formula for public school teachers in St. Louis, Missouri, that resulted in an immediate and dramatic increase in their incentives to remain in covered employment. To identify the effect of the enhancement on teacher retention, the analysis leverages the fact that the strength of the incentive increase varied across the workforce depending on how far teachers were from retirement eligibility when it was enacted. The results indicate that the St. Louis enhancement—which was structurally similar to enhancements that were enacted in other public pension plans across the United States in the late 1990s and early 2000s—was not a cost-effective way to increase employee retention.

scholarly journals Worker Choices About Payouts in Public Pensions

2017 ◽  
Author(s):  
Robert L. Clark ◽  
Janet Raye Cowell
Keyword(s):  
Local Governments ◽  
Pension Plans ◽  
Policy Implications ◽  
Empirical Literature ◽  
Defined Benefit ◽  
Retirement Plans ◽  
The Public ◽  
State And Local ◽  
State Employees ◽  
State Pension

This chapter reviews available data on the annuity choices offered to retirees who participate in defined benefit (DB) plans. DB plans are most commonly offered by state and local governments to their employees, and information on annuity options is readily available. The authors examine all state pension plans that cover general state employees and teachers, and develop a table showing the similarities and differences across these approximately eighty separate state retirement plans. The authors determine the proportion of retirees selecting each of the annuity options. Where possible, annuity options in the public sector are compared to those offered by private sector employers. The chapter also reviews the empirical literature on who chooses the various annuity options offered in DB plans. Finally, the authors consider the policy implications of plan design and how this affects the types of annuities offered to retirees.

Retirement and Pensions in American Economic History

2018 ◽  
pp. 354-374
Author(s):  
Robert Clark ◽  
Lee A. Craig
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Economic History ◽  
Pension Plans ◽  
Federal State ◽  
Defined Benefit ◽  
Retirement Plans ◽  
The Us ◽  
Defined Benefit Plans ◽  
State And Local

The proportion of the US population that survives to retirement age has increased over time, as has the share of the older population that retires. Higher incomes at older ages explain the increase in the incidence of retirement. Pensions provide much of that income. In general, public-sector workers, especially military personnel, were covered by pensions before their private-sector counterparts, and coverage in the public sector remains more widespread, and generous, than it is in the private sector. Public-sector pension plans are more likely to be defined benefit plans than are private-sector plans. Many public-sector employers have promised their employees more in benefits than they have set aside to pay for those benefits. Estimates suggest that the federal, state, and local retirement plans currently in operation are underfunded by as much as $5 trillion.

Randomized Observational Studies on the Economics of Therapies – Biometrical Experience of Two Trials

1998 ◽  
Vol 37 (01) ◽  
pp. 53-58 ◽  
Author(s):  
J. Högel ◽  
A. C. Rodloff ◽  
G. Büchele ◽  
W. Gaus
Keyword(s):  
Randomized Controlled Trial ◽  
Observational Studies ◽  
Controlled Trial ◽  
Innovative Therapy ◽  
Treatment Regimens ◽  
Randomized Controlled ◽  
Long Run ◽  
Low Costs ◽  
The Cost ◽  
Economic Studies

Abstract:Economic studies in medicine are intended to investigate costs, associated with a particular problem dealing with the indication, diagnosis or therapy, for instance, whether the high costs involved in a highly intensive or innovative therapy could be balanced by the eventual savings made, due to the shorter periods of treatment. In such situations a randomized controlled trial is necessary to find out which therapy or which therapeutical strategy is least expensive in the long run. Economic studies do, however, present some specific problems. Making a list of all the cost-relevant treatment items can be very laborious, but the use of flat rates and lump sums alone cannot lead to a complete cost analysis. Often, costs between hospitals vary more than between treatment regimens.Early and sudden deaths incur low costs and may bias the results. Furthermore, costs are distributed with a long and heavy upper tail incltJding extreme outliers. This does, in fact, complicate the estimation of the sample size. In this article, these problems are outlined and, with the help ofthe data obtained from two randomized economic trials in health care, solutions are proposed and discussed.

Selection of Retirement Saving Plan for a Private-sector Employee in Pakistan

2020 ◽  
pp. 097282012093936
Author(s):  
Bushra Naqvi ◽  
Syed Kumail Abbas Rizvi ◽  
Arsalan Shahzad
Keyword(s):  
Private Sector ◽  
Asset Management ◽  
Yield Curve ◽  
Pension System ◽  
Assistant Professor ◽  
Pension Plans ◽  
Retirement Plans ◽  
Retirement Benefits ◽  
Private And Public ◽  
Sector Employee

Tehmina Khan, a 35-year-old, married mother of two, had been working as an assistant professor at a private sector university, University of Management and Information (UMI), School of Business. For the last few years, she had been saving for her retirement via a provident fund (PF) with her employer. The fund had been posting generous returns for years up until July 2018, when it posted earnings well below the inflation rate for the same period. Tehmina wanted to be financially self-sufficient in her post-retirement years and sought no financial dependence on her posterity for that matter. The meagre returns heightened her concerns about the future eventualities, so she had to decide if she should switch to another retirement plan. She needed to explore alternative retirement plans and identify how she could participate in a voluntary pension system (VPS) outside her employer’s PF. Also, if she decided to go ahead with VPS, she had to decide which asset management company(s) and portfolio manager(s) to allocate her savings to. The case comprehensively discusses the details about different retirement benefits and mechanisms and distinguishes aspects of private and public sector retirement plans in Pakistan. Most importantly, the case includes data on the performance of seventeen out of a total of nineteen pension plans operating in Pakistan. It also includes data on asset allocations of pension funds; overall macroeconomic, historical and stock market performances; and yield curve for the last 10 years.

Meeting The Communication Challenge

1998 ◽  
Vol 30 (6) ◽  
pp. 32-37
Author(s):  
Dennis R. Ackley
Keyword(s):  
Pension Plans ◽  
Financial Resources ◽  
Retirement Plans ◽  
New Approach ◽  
Retirement Plan ◽  
Communication Challenges ◽  
Communication Challenge

For the most part, account-based pension plans are not traditional long-service retirement plans. They are "when your service ends" plans, whether the employee leaves to retire or start a new job or vocation, and they are much like savings plans. They are also a new approach to helping employ-ees understand and accumulate their financial resources. Easier to explain to employees than more traditional pension plans, account-based plans still present stumbling blocks in terms of how to successfully introduce them to your orga-nization. Why the new plan is being introduced and what it is intended to do and not to do are the toughest and most important communication challenges that need to be met. Key communica-tion elements include proper naming of the bene-fit (don't call it a retirement plan) and demonstrating your organization's intended people strategy.

Zakat on retirement and pension plans

2015 ◽  
Vol 8 (3) ◽  
pp. 274-290 ◽  
Author(s):  
Shafiqur Rahman
Keyword(s):  
Research Work ◽  
Pension Plan ◽  
Pension Plans ◽  
Mandatory Retirement ◽  
Pension Benefit ◽  
Investment Risk ◽  
Retirement Plans ◽  
Market Place ◽  
Content Type ◽  
Comprehensive Survey

Purpose – This paper aims to compare and contrast alternative pension plans in the market place and their status as zakatable wealth or property. These plans differ in terms of who is responsible for providing funds for pension benefit to the retirees upon retirement and who is responsible for bearing investment risk. Whether a pension plan is subject to zakat immediately or upon receipt at retirement depends on immediate accessibility to and ownership of the funds in the account. It makes no difference whether employer and/or the employee is (are) responsible for funding the plan and who bears the investment risk. Design/methodology/approach – Descriptive and analytical methods were used. Findings – There is consensus among Muslim jurists and shariah scholars that mandatory retirement plans offered as a part of compensation and benefit package for a job are subject to zakat when money is received upon retirement and non-mandatory plans offered as replacement for or supplement to employer-sponsored plans with voluntary employee participation are subject to zakat in each year of employment. Originality/value – There is no prior research work in the extant literature examining zakatability of alternative retirement plans offered in the US marketplace. This paper fills this void and provides a comprehensive survey and analysis of all available retirement plans and their treatment with respect to zakat.

scholarly journals Empirical analyses on the effects of economic incentives on teacher retention and teacher quality

2019 ◽  
Author(s):  
◽  
Xiqian Wang
Keyword(s):  
Public School ◽  
Teacher Quality ◽  
Structural Model ◽  
Economic Incentives ◽  
Early Career ◽  
Public School Teachers ◽  
School Teachers ◽  
Quality Teachers ◽  
High Quality ◽  
Long Run

This study conducts empirical analysis on the effects of economic incentives on retaining teachers, both in the late-career and early-career, and improving teacher quality in public schools. The first chapter analyzes whether a large pension enhancement helps to retain late-career teachers in an urban district, St. Louis City in Missouri. Many states enhanced pension benefits of public school teachers during the 1990s. St. Louis followed this trend with a major benefit enhancement in 1999. Descriptive analysis of administrative panel data and simple regression analysis suggest that senior teachers were highly responsive: teaching careers were shortened, and the likelihood of retirement increased. To gain further insight into the long run effect of the plan changes, and the differential effects of various components of the change, I estimate a dynamic structural model, which provides good in-sample and out-of-sample fit. Simulations of retirement behavior based on the estimated model under different pension rules imply a large long-run reduction in the labor supply of senior teachers. The expected years of additional teaching for the current cohort of senior teachers would be increased by nearly 27 percent if they were operating under the pre-enhancement pension rules. The second chapter analyzes late-career teacher turnover induced by pension incentives. Using longitudinal data with performance measures for Tennessee public school teachers, we find higher quality teachers are less likely to retire conditional on age and experience. To quantify the effects of pension incentives, we estimate a structural model for retirement and find that high quality teachers have a lower disutility for teaching relative to retirement. We use the structural estimates to simulate the effect of changes in retirement incentives. Enhancements to traditional plans accelerate teacher retirement, whereas targeted retention bonuses delay retirement and retain high quality teachers at a relatively modest cost. The third chapter focuses on the joint dynamics of attrition behaviors and teaching effectiveness of early-career teachers. Using data from a comprehensive evaluation system in Tennessee, I analyze the factors of attrition, the dynamics of teacher quality, and the retention policies for retaining high-quality teachers. The data suggest teacher attrition is negatively correlated with teacher quality. A sequential probit model of binary attrition and binary rating produces good fits for both survival rate and quality distribution. The model shows the quality of novice teachers increases in experience, salary and education level. Increase in salaries of novice teacher could reduce attrition and improve quality.

scholarly journals THE PLIGHT OF FIRST-YEAR TEACHERS IN PUBLIC PRIMARY SCHOOLS

2021 ◽  
Author(s):  
Xiaotian Han ◽  
Keyword(s):  
Teacher Identity ◽  
Primary Schools ◽  
Experienced Teachers ◽  
First Year ◽  
Public School Teachers ◽  
First Year Teachers ◽  
School Teachers ◽  
Qualified Teachers ◽  
Professional Teacher ◽  
Teaching Programs

First-year teachers are teachers who are new to teaching. The number of public school teachers is increasing in many countries and areas. Meanwhile, data also showed that some newly qualified teachers anticipated leaving or already left after the first year teaching. The purpose of the study aims to present a review and synthesize literature regarding the challenges of first-year teachers in public primary schools. Peer-reviewed articles (N=30) are collected from Google Scholar via systematically searching key words “first-year teachers” with one or more of the following terms: challenge, difficulty, attrition, leaving, and public primary schools. The results show first-year teachers meet general challenges listed as below: (a) building a professional teacher identity, (b) applying teaching theories in real class practice, and (c) handling the same heavy teaching loads and responsibilities as experienced teachers. In addition, first-year teachers in Shanghai public primary schools also meet the following challenges: (d) not having enough pre-service teaching programs, (e) facing high competition and a workload, and (f) building positive and stable relationships with parents/administrators. Considering by new qualified teachers’ internal motivation and the external challenge they meet, first-year teachers are overwhelmed in dealing with these imbalances.

Sign in / Sign up

Export Citation Format

Share Document