Myers reports on state laws affecting the pensions of Chicago Public School teachers. He discusses the politics behind unions involved in the decision making process and their important role in determining a balanced budget. According to Myers, the Caucus of Rank and File Educators (CORE) is a recent contender "whose members say the Pension Board needs better...
Is It Time To Rethink Teacher Pensions In Maryland?
From the Executive Summary:
"This paper compares Maryland’s former (prior to Spring, 2006) teacher pension system to those in Pennsylvania and several other states. On the basis of simple replacement rates, the former Maryland state plan was the lowest in the nation. However, such a simple comparison ignores other important facets of state plans:
• Maryland teachers are in the federal Social Security system, while teachers in many other states are not. When Social Security benefits are included, Maryland’s total retirement benefits compare much more favorably to those in other states.
• The teacher contribution rate in Maryland was very low relative to other states’, including Pennsylvania, which may be attractive for many young teachers.
• The cost-of-living adjustment in Maryland is more generous and reliable than in many other states, including Pennsylvania.
• Compared to other states, the Maryland system provided more income up front and less in later years. When the lifetime flow of income for a hypothetical teacher in five states is computed using standard financial methods, lifetime earnings in Maryland were not obviously out of line with lifetime earnings in other states.
As importantly, evidence from teacher labor market data does not suggest that teacher retention or quality is worse in Maryland than in Pennsylvania."