Teacher Pension Workshop: Connecting Evidence-Based Research to Pension Reform: Cross-Subsidization of Teacher Pension Costs: The Impact of the Discount Rate

Abstract

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A Structural Econometric Approach to Analyzing the Impact of Teacher Pension Reform

“…Teacher pension costs have been rising in the past decades. Nationally, employer costs for public teacher pensions doubled from 2004 to 2019 (from 11.9% of salaries to 23.6%; see Costrell, 2020). The rising pension costs are forcing cuts in other areas of school budgets, such as increases in teacher salaries, with little prospect for relief in the near term (Burnette & Will, 2018; Costrell & Maloney, 2013; Krausen & Willis, 2018; McGee, 2016.…”