December 2013

Illinois recently passed pension reform legislation with a number of complex provisions. To better understand the legislation and the issues around it, I spoke with Illinois State Senator Daniel Biss, a co-chair of a bipartisan working group exploring solutions to the state's pension crisis and a co-sponsor of the recent legislation.
A “crisis” is sometimes in the eyes of the beholder. The public pension crisis has a lot to do with the broader broken compact between Americans and their government over fiscal priorities. Yet again, it’s a place where public school teachers are the leading edge of the great debate about what it means to be an American.
Hyping the difficulty of public employee pension funds is one of the few growth industries in the current economy. The reality is that teacher pensions face a mixed situation.
If you follow news about the District of Columbia Public Schools (DCPS) closely, you could be forgiven if you thought teacher turnover had increased since the schools were handed over to mayoral control in 2007. But, at least according to the city's teacher pension plan, turnover hasn't increased at all; it's actually declined slightly.
Placing all workers on a path to a secure retirement regardless of tenure or when they were hired should be the principle aim of any retirement system. Unfortunately the current system falls short of this aim in most jurisdictions today.
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.
In terms of teachers and other public school employees, the real challenge is recruiting and retaining the most accomplished professionals to help ensure the success of all our students and ultimately our nation.
Where do we begin on the path to building a pension system that doesn’t further short-change Millennials?

Welcome to teacherpensions.org, a new site designed to compile analysis and commentary on teacher pensions, provide information to help educators understand the impact of various pension proposals on their own finances, and use social media tools to help engage educators in the national conversation about teacher pensions. We intend the site to serve as a point of entry into the national conversation about teacher retirement sustainability and design and serve a variety of audiences, including teachers, policymakers, the media, and thought leaders.

We at teacherpensions.org have our own perspectives on the pension issue, but we respect that there are different ways of looking at this issue. To hear from those diverse voices, we invited a range of panelists—from union leaders to economists to teacher voice organizations—to participate in an online forum on teacher pensions.  We asked each of them to respond to two main questions:

1. Is there a teacher pension crisis? If so, what exactly is the problem?

2. How do we ensure that teachers have secure, sustainable, and affordable retirements?

We’ve collected those responses and will be posting the authors’ contributions here, in their own words, on a rolling basis starting next week. Come back to read contributions from the National Education Association, TeachPlus, the Laura and John Arnold Foundation, and more. 

To read each contributor's response, click on the following links: 

Celine Coggins, Founder & CEO, TeachPlus
 
Dennis Van Roekel, President, National Education Association
 
Josh B. McGee, Vice President of Public Accountability, The Laura and John Arnold Foundation
 
Dean Baker, Co-Director, Center for Economic and Policy Research
 
Elisabeth Evans, Founding CEO & Board Member, The VIVA Project
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.