The extent, causes, and possible consequences of underfunded teacher pensions are examined. The analysis is divided into two separate studies. Essay I, "Appraising the Funding Status of Teacher Pensions: An Econometric Approach," examines the funding status of teacher pension plans for the 50 states and for selected localities for the decade 1971-1980. Based on a pension underfunding equation, the results reveal that the dollar value of plan underfundings have risen by over 50 percent in the average state from 1971 to 1980. Essay II, "Funding Teacher Pensions or Does Paul Rob Peter to Pay Mary?" seeks to answer the question of why some state plans are well funded and others are poorly funded. The analysis examines two central determinants of underfundings: pension benefits and pension contributions. Three models of state pension policymaking are discussed. Results indicate that there is a slow downward drift in the level of underfundings, and there seems to be no national teacher pension crisis on the fiscal horizon. However, the system does deserve continued scrutiny over the next two decades. (49 references) (SI)