How much do teachers value compensation deferred for retirement (CDR)? This question is important because the vast majority of public school teachers are covered by defined benefit pension plans that "backload" a large share of compensation to retirement relative to the compensation structure in the private sector, and there is scant…

Defined benefit (DB) pension plans incentivize "salary spiking," where sharp increases in pay are leveraged into significantly higher levels of retirement compensation. While egregious instances of salary spiking occasionally make headlines, there is little guidance on the definition of salary-spiking behavior or understanding of its…

In this brief, we examine an important but obscure form of state spending on K-12 education-state subsidies of school district pension costs. In 2018, this exceeded $19 billion across 23 states. To put that amount into perspective, 2018 federal spending on Title I programs was $15.8 billion. This revenue stream is often ignored in analyses of…

On February 24, 2017, all of the authors of the state-of-the-state manuscripts published in the "Journal of Education Finance" met in Cincinnati, Ohio, to participate in a roundtable discussion focused on recent legislative actions in 38 states. A majority of those papers were revised to reflect a final report on legislative actions…

This essay is a compilation of several conversations with Dr. Gene Roth, Distinguished Teaching Professor Emeritus at Northern Illinois University. Dr. Roth is past President of the Academy of Human Resource Development, and although he is well known for his efforts in bringing humor into the field of HRD, he is not the same Gene Roth that played…

The U.S. teacher pension system is in major financial trouble, with almost $390 billion in unfunded liabilities, according to a recent report from the National Council on Teacher Quality (NCTQ). And funding shortfalls grew in all but seven states between 2009 and 2012, the nonprofit research and policy group found. Though the current economic…

Boosting early retirement in cash-strapped districts does not hurt students' math and reading scores, according to new studies released at the American Economic Association meeting, but pension-incentive programs may cost schools some of their most effective teachers. Separate studies of teachers in California, Illinois, and North Carolina paint a…

Community college presidents often get advice about how to land a job or, once hired, how to be more effective leaders, but they do not hear as much about their role in preparing their institutions for life after their service. Three successful community college presidents share how they left a legacy at their respective community colleges by…

As public budgets have grown tighter over the past decade, states and school districts have sought ways to control the growth of spending. One increasingly common strategy employed to rein in costs is to offer experienced teachers with high salaries financial incentives to retire early. Although early retirement incentive (ERI) programs have been…

Chicago teachers voted last week to suspend a 7-day-old strike, sending some 350,000 students back to the classroom and paving the way for the teaching force to vote on a tentative contract. But for many in the Windy City, the contract has raised another potentially tall hurdle: how the cash-strapped district will manage to pay for it. District…

On Dec. 1, Nick Penning, a longtime fixture on the advocacy team at the American Association of School Administrators (AASA), retired as the association's senior legislative analyst. In his 26 years with the association, Penning played many roles relating to advocacy, but the one he relished the most was serving as the principal communicator with…

Those following recent employment trends have heard about the nursing shortage. A combination of increased demand and impending retirements means 1 million nurses will be needed in hospitals, homes, and medical facilities by 2018. That's good news for job seekers. But it is not just shortages in nursing. Allied health careers, including…

Although the rules for public-employee pension funds vary, they operate under the same guidelines. Throughout their careers, teachers and other state and local employees contribute portions of their salaries into retirement funds managed by states and municipalities. In almost all cases, the employers also pitch in a percentage of the employees'…

School business administrators are devoting a significant portion of their time to retirement-related issues. Describes the retirement systems in place in Illinois and provides some budgeting examples for retirements and early retirements of school district personnel. (MLF)