The value of pension benefits varies widely, by a teacher's age of entry and exit. This variation is masked by the uniform rate of annual contributions, as a percent of pay, to fund benefits for all. For the first time, we unmask that variation by calculating annual costs at the individual level. In California, we find that the value of a…

To improve the finances of the Teacher Retirement System of Texas, which serves almost 1.5 million workers and retirees, Texas Governor Greg Abbott signed legislation in spring 2019 that gradually raises plan contributions by the state, school districts, and employees. Additional contribution hikes may be necessary to close the plan's funding gap,…

In 2019, the National Center for Education Statistics (NCES) began exploratory data collection for the School Pension Survey (SPS). The SPS is a new data collection of elementary/secondary school teacher pension data collected at the school district level. The SPS was developed primarily in response to public demand for data on teacher and other…

The School District of Philadelphia is contributing historically high sums to the state-run pension system for its employees, and these hefty payments will affect budgets for the district and the city government for years to come. Unlike Philadelphia's municipal government, the School District of Philadelphia does not control the pension system…

Voters in Marin County have long been willing to pass parcel taxes to fund their schools. In 2016, taxes faced unprecedented opposition from local activists; taxes in Kentfield and Mill Valley were defeated or passed by previously unheard-of narrow margins, respectively. What changed? This case study uses district financial and demographic data as…

Most public school teachers in the United States are enrolled in defined benefit (DB) pension plans. Using administrative microdata from four states, combined with national pension funding data, we show these plans have accumulated substantial unfunded liabilities--effectively debt--owing to previous plan operations. On average across 49 state…

Most public school teachers in the United States are enrolled in defined benefit (DB) pension plans. Using administrative microdata from four states, combined with national pension funding data, we show these plans have accumulated substantial unfunded liabilities--effectively debt--owing to previous plan operations. On average across 49 state…

State-specific licensing policies and pension plans create mobility costs for educators who cross state lines. We empirically test whether these costs affect production in schools--a hypothesis that follows directly from economic theory on labor frictions--using geocoded data on school locations and state boundaries. We find that achievement is…

Public school districts are facing twin challenges: maintaining a labor supply of qualified teachers while shoring up the deteriorating system that compensates them. Keeping public-school teachers' pensions plans flush is expensive, and it accounts for a growing share of education spending. In some states, public charter schools provide an…

Pension legacy costs can restrict the amount of resources available for current public education, potentially making it more difficult to attract and retain high-quality teachers. Oregon provides a useful case study in pension legacy costs because many school districts in the state are now reallocating General Fund expenditures to cover sizeable…

Barriers to the cross-state mobility of the teacher workforce can have undesirable effects on the teacher workforce and student outcomes. While a large literature addresses issues related to within-state mobility, very little is known about patterns of cross-state mobility. This paper addresses that research gap. We describe features of Oregon's…

State-specific licensing policies and pension plans create mobility costs for educators who cross state lines. We empirically test whether these costs affect production in schools--a hypothesis that follows directly from economic theory on labor frictions--using geo-coded data from the lower-48 states. We find that achievement is lower in…

Educators in public schools in the United States are typically enrolled in defined-benefit pension plans, which penalize across-plan mobility. We use administrative data from Missouri to examine how the mobility penalties affect the labor market for school leaders, and show that pension borders greatly reduce leadership flows across schools. Our…

In Pennsylvania as in many other states, employee pension costs are a significant source of financial pressure for school districts (Zeehandelaar and Northern 2013, Pennsylvania Public Employees' Retirement Commission 2013). In order to gain greater insight into the nature of Pennsylvania school districts' financial burden related to pension…

Barriers to the cross-state mobility of the teacher workforce can have undesirable effects on the teacher workforce and student outcomes. While a large literature addresses issues related to within-state mobility, very little is known about patterns of cross-state mobility. This paper addresses that research gap. We describe features of Oregon's…