PENSIONS IMPROVE QUALITY OF U.S. PUBLIC EDUCATION SYSTEM AND REDUCE TEACHER TURNOVER
Magnetic Effect of Pensions Helped Retain 32,000 Teachers, Saved Up to $284 Million Nationally in Turnover Costs
WASHINGTON, D.C., September 25, 2017 – A new research brief analyzing the effectiveness of defined benefit (DB) pensions on teacher retention and productivity finds that pensions play a critical role in recruiting and retaining highly productive teachers. As a result, pensions help increase schools’ effectiveness, which benefits students. Additionally, DB pensions save school districts money by reducing expensive teacher turnover costs. These findings are contained in a new research brief from the National Institute on Retirement Security (NIRS), Revisiting the Three Rs of Teacher Retirement Systems: Recruitment, Retention and Retirement.
“The reality we face is that the nation’s schools continue to struggle with a growing shortage of teachers, and that teachers are paid on average as much as 60 percent less than similarly educated professionals across the globe,” says Diane Oakley, NIRS executive director. “Pensions play an essential role in recruiting and retaining our best and most experienced teachers. It’s critical that states continue to leverage the magnetic effect of pensions to help students achieve at their highest potential.”
The new research brief finds that: