ERIC Number: EJ1432180
Record Type: Journal
Publication Date: 2024-Jul
Pages: 31
Abstractor: As Provided
ISBN: N/A
ISSN: N/A
EISSN: EISSN-2562-783X
Identifying Teacher Salary Spiking and Assessing the Impact of Pensionable Compensation Reforms in Illinois
Dan Goldhaber; Cyrus Grout; Kristian L. Holden
Journal of Education Human Resources, v42 n3 p323-353 2024
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 prevalence. We develop empirical methods to quantify the prevalence of salary spiking by identifying cases where end-of-career compensation deviates from the expected level of compensation. We apply this method to teacher pension systems in Illinois to assess the prevalence of salary spiking before and after the implementation of a reform designed to dissuade salary spiking.
Descriptors: Teacher Salaries, Retirement Benefits, Teacher Retirement, Compensation (Remuneration), Finance Reform, Financial Policy, State Policy, Personnel Selection, Labor Market, Teaching (Occupation), Public School Teachers
University of Toronto Press. 5201 Dufferin Street, Toronto, ON M3H 5T8, Canada. Tel: 416-667-7810; Fax: 800-221-9985; Fax: 416-667-7881; e-mail: journals@utpress.utoronco.ca; Web site: https://www.utpjournals.press/loi/jehr
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: National Center for Analysis of Longitudinal Data in Education Research (CALDER) at American Institutes for Research (AIR)
Authoring Institution: N/A
Identifiers - Location: Illinois
Grant or Contract Numbers: N/A