Deferred Retirement Compensation for Career K-12 Employees: Understanding the Need for Reform

Independence Institute ^ | 12/18/2008 | Michael Mannino

[businessprofessor]

The debate about defined benefit pensions in K-12 education has focused on unfunded liabilities rather than appropriate levels of retirement compensation. Public K-12 employees typically retire at much younger ages with more replacement income and better inflation protection than private sector counterparts. School districts use contribution rates derived from uncertain assumptions about pension plan returns as substitutes for estimating realistic retirement compensation levels. The contribution rates ignore the considerable value of risk assumption that public employee pension plans provide to career employees. ...

[businessprofessor]

This links to the list of issue papers. The deferred compensation report (pdf) is linked at the top of the page.

This report is my second study of deferred retirement compensation and public employee pensions. I have focused on the compensation side of the pension issue to highlight the excesses of these pensions. Competent workforces can be be maintained with predictable taxpayer cost if these pensions are substantially reformed.

[WayneS]

K-12 EMPLOYEES?

I thought you were classified as a STUDENT when you were in K-12. And when SHOULD a Kindergartener retire, anyway? For my son last year it was 7:30 pm.

[Red_Devil 232]

Caree K-12 Student