Do High Pensions for Superintendents Encourage Status Quo? - District Dossier - Education Week

Do High Pensions for Superintendents Encourage Status Quo? - District Dossier - Education Week

In St. Louis, more than 10 percent of operating costs go to pensions. Chicago's school district leaders cited high teachers' pension costs as one of the reasons behind their most recent round of teacher layoffs. And, of course, public-sector pensions are one of the major factors in Detroit's historic bankruptcy.
Most of the conversation about doomed pension plans in the education world has focused on teachers' pensions. But what about superintendents and administrators? Education Nextrecently published an article examining how school and district administrators' pensions play into this picture—and why those leaders have very little personal incentive to reform the pension system.
Superintendents and principals are generally enrolled in the same pension programs as teachers, Education Next reports, but, since they're receiving higher pay at the end of their careers, they draw significantly more in pension than the average teacher. "Promoted individuals, who have large late-career salary increases, benefit disproportionately from a formula that determines the value of the annuity based on the highest few years of earnings," write Cory Koedel, Shawn Ni, and Michael Podgursky, all in the economics department at the University of Missouri, Columbia, in an analysis of data from Missouri educators' pension system.
In Missouri, superintendents' expected benefits are 89 percent higher than teachers', and their average contribution is just 53 percent higher. The authors suggest that a system that prioritizes early-career take-home pay instead of pensions might attract more talent to the profession.
Whether or not you agree with the authors' conclusion that administrators are "on the same side of the table" as labor in terms of reconsidering pension programs, it's interesting to see this particular facet of the pension issue in the spotlight. Pension programs in other states may look different than in Missouri, and in charter schools, most teachers and administrators don't have traditional pension programs at all.
Another point from the piece: Pensions systems are designed to reward those who stick around, but to eventually encourage them to retire. Superintendents and principals, like teachers, are likely to retire around 55 or 56, the article reports.
One question this raised in this reporter's mind: Could this incentive to retire at a (relatively) early age be related to why there's so much churn at the top of districts? Are superintendents simply encouraged by their retirement plans to retire once they've hit a certain point in their careers?

Comments

Post a Comment

Popular posts from this blog

Missouri Schools - The Washington Post

Missouri Schools - The Washington Post Some schools brag about their high passing rates on AP or IB, meaning the percentage of test-takers who scored 3, 4 or 5 on the 5-point AP exam or 4, 5, 6 or 7 on the 7-point IB exam. Passing scores make students eligible for credit at many colleges and universities. I decided not to count passing rates in this way because I found that many high schools kept those rates artificially high by allowing only top students to take the courses. AP, IB and AICE are important because they give average students a chance to experience the trauma of heavy college reading lists and long, analytical college examinations. Research has found that even low-performing students who got a 2 on an AP test did significantly better in college than similar students who did not take AP. On the list, we also give readers a sense of how well each school’s students are doing on the tests by posting the Equity and Excellence rate, which is the percentage of all graduating s...
Read more

My Letter Requesting To Become A Board Member

Sherri R. Tucker 1200 SE London Way Lee’s Summit, MO   64081 816-554-3017 autism@kc.rr.com Lee’s Summit R-7 School District C/o Linda Ismert, Board Secretary Stansberry Leadership Center 301 NE Tudor Road Lee’s Summit, MO   64086 Ms Ismert I would like to submit my name for the position on the Lee’s Summit R-7 School Board.   As you know, I have expressed an interest in being on the school board in the past.   On my first attempt I only lost by 2% which would indicate that the voters have an interest in me being on the board as well.   I would think that the voters’ wishes would be taken into consideration. I have a strong relationship with many of the districts’ families and I can help to bridge the gap between them and the district.   I understand the commitment to the time and energy required each week for meetings, phone calls, conversations, visits to schools, and professional development seminars and workshops.   I already do that with the f...
Read more

School Board Candidates

I am attempting to find information on the school board candidates.  It has been much easier in the past.  This year it has been more difficult.  Susan D. Coffman Susan Coffman has served as the Outreach Program Coordinator and Finance Officer for Lee’s Summit CARES since 2008. She has been a mayor-appointed representative to the Human Services Advisory Board, facilitated alcohol retailer trainings, organized the annual Holly Festival with the DARE program, managed bookkeeping and accounting, and served as the community liaison between LS CARES and local business, universities and the cities.  Coffman’s financial background includes work as a customer support specialist at Jack Henry & Associates Inc. for 11 years and assistant vice president and customer support specialist at Merchants Bank for 17 years.  Her community activities include serving on the Human Services Advisory Board, Paradise Park Advisory Board, Lee’s Summit Social Services Board, form...
Read more