Who Benefits from Pension Enhancements?
During the late 1990s public pension funds across the United States accrued large actuarial surpluses. The seemingly flush conditions of the pension funds led legislators in most states to substantially improve retirement benefits for public workers, including teachers. In this study we examine the benefit enhancements to the teacher pension system in Missouri. These enhancements resulted in large windfall gains for teachers who were close to retirement when the legislation was enacted. By contrast, novice teachers, and teachers who had not yet entered the labor force, were made worse off. The reason is that front-end contribution rates have been raised for current teachers to offset past liabilities accrued from the enhancements. Other things equal, the teaching profession in Missouri is now less appealing for young teachers as a result of the pension enhancements.
|Date of creation:||23 May 2012|
|Date of revision:||08 Jun 2012|
|Contact details of provider:|| Postal: 118 Professional Building, Columbia, MO 65211|
Phone: (573) 882-0063
Fax: (573) 882-2697
Web page: http://economics.missouri.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morten Falch & Jan Markendahl, 2010. "Introduction," Chapters, in: Promoting New Telecom Infrastructures, chapter 1 Edward Elgar Publishing.
- Robert M. Costrell & Michael Podgursky, 2009. "Peaks, Cliffs, and Valleys: The Peculiar Incentives in Teacher Retirement Systems and Their Consequences for School Staffing," Education Finance and Policy, MIT Press, vol. 4(2), pages 175-211, April.
- Courtney Coile & Jonathan Gruber, 2007. "Future Social Security Entitlements and the Retirement Decision," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 234-246, May.
- Jeffrey R. Brown, 2007.
"Guaranteed Trouble: The Economic Effects of the Pension Benefit Guaranty Corporation,"
NBER Working Papers
13438, National Bureau of Economic Research, Inc.
- Jeffrey R. Brown, 2008. "Guaranteed Trouble: The Economic Effects of the Pension Benefit Guaranty Corporation," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 177-198, Winter.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Robert Novy-Marx & Joshua D. Rauh, 2009. "The Liabilities and Risks of State-Sponsored Pension Plans," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 191-210, Fall.
- Cory Koedel & Michael Podgursky, 2011.
"Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality,"
1109, Department of Economics, University of Missouri, revised 10 Apr 2012.
- Cory Koedel & Michael Podgursky & Shishan Shi, 2013. "Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(3), pages 574-596, 06.
- Reis, Ricardo, 2005.
CEPR Discussion Papers
5053, C.E.P.R. Discussion Papers.
- N. Lesca, 2010. "Introduction," Post-Print halshs-00640602, HAL.
- Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2006.
"Teacher-Student Matching and the Assessment of Teacher Effectiveness,"
NBER Working Papers
11936, National Bureau of Economic Research, Inc.
- Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2006. "Teacher-Student Matching and the Assessment of Teacher Effectiveness," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
When requesting a correction, please mention this item's handle: RePEc:umc:wpaper:1207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valerie Kulp)
If references are entirely missing, you can add them using this form.