pension enhancements

Research by Cory Koedel shows pension benefits may not be effective tool for teacher retention

Thursday, October 27, 2016 -- tmckv9
Cory Koedel, associate professor of economics

COLUMBIA, Missouri – Fifteen years ago, in an effort to improve teacher benefits, St. Louis Public Schools enacted a change to the defined-benefit pension plan that resulted in an immediate and dramatic increase in the incentives to remain teaching in St. Louis. Similar enhancements also occurred across the country.

Pension Enhancements and the Retention of Public Employees

We use data from workers in the largest public-sector occupation in the United States – teaching – to examine the effect of pension enhancements on employee retention. Specifically, we study a 1999 enhancement to the benefit formula for public school teachers in St. Louis that resulted in an immediate and dramatic increase in their incentives to remain in covered employment.

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