How are teacher pension benefits funded? Under traditional plans, the full cost of career teachers' benefits far exceeds the contributions designated for them. The gap between the two has three pieces, which may (with some license) be mnemonically tagged the three R's of pension funding: "redistribution," "return," and…

The COVID-related financial market decline and economic recession have raised new concerns regarding the financial sustainability of retirement plans for state and local government employees, the largest group of whom is public school teachers. Using data from the Public Plans Database and the National Income and Product Accounts, I analyze…

In this research, we explore responsible investing in Canadian Universities. Interviews were conducted with 31 universities that were identified as having endowments or pension portfolios greater than $50M. We also reviewed publicly available data for these institutions. Universities reported facing numerous barriers but perhaps most noteworthy…

When the Carnegie Foundation was established in 1905, universities in Canada and Newfoundland were eligible for grants, on strict conditions that were seen by some as "colonial," "continentalist," or "imperial" intrusions on autonomy; for example, a Carnegie plan to create a federation of Maritime universities. This…

Over the last two decades, twenty-two states have moved away from traditional defined benefit (DB) pension systems and toward pension plan structures like the defined contribution (DC) plans now prevalent in the private sector. Others are considering such a reform as it is seen as a means of limiting future pension funding risk. It is important to…

The growing fiscal cost of K-12 teacher pension plans and pension-induced labor market distortions have led to calls for teacher pension reforms. Dynamic structural econometric models are a useful way to analyze the fiscal and staffing consequences of current and alternative retirement plans. This article lays out the benefits of the structural…

Public school teachers retire much earlier than comparable professionals. Pension rule changes affecting new teachers can be used to close this gap in the long run, but any effects will not be observed for decades and the implications for workforce quality are unclear. This paper considers targeted incentive policies designed to deter retirement…

Retirement benefits for faculty are an important, but relatively understudied, topic in postsecondary education. To date, there have been very few studies that have used qualitative research methods to examine how workers make financial decisions about retirement, and no qualitative investigations of faculty choice between DB and DC plans. To help…

This article argues the importance of teaching students about the philosophical and mathematical underpinnings of Australia's superannuation system as an example of a real-world problem context. It also provides a rationale for teaching financial modelling and decision-making in ways that respect the diverse financial realities represented in…

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

The Universities Superannuation Scheme (USS) was founded in 1975, when it replaced an outdated set of pension arrangements for university staff. The USS was stable for nearly four decades but, in recent years, it has undergone considerable turbulence. The causes include tighter pension regulations, growing life expectancy and lower financial…

West Virginia's attempt to reshape its teacher retirement system in the 1990s and early 2000s is often cited as a cautionary tale to block other teacher pension reform efforts across the country. Critics argue that because West Virginia replaced its pension fund with a defined contribution (DC), 401(k)-style plan in the early nineties, and then…

Background: Despite being an important component of teacher compensation, government-sponsored teacher pensions are only 72 percent funded on average and have total unfunded liabilities exceeding $600 billion nationally (McGee, 2019; Novy-Marx & Rauh, 2011; "Public Plans Data," 2020). Annual per pupil teacher retirement costs account…

The study investigated the influence of retirement counselling on retirement plan among civil servants in Ekiti State. The study specifically examined the level of retirement counselling among civil servants; the level of retirement plan among civil servants; and the relationship between retirement counselling and retirement plan among civil…

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…