Pension benefits may not be effective tool for teacher retention
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. Now, a study from Cory Koedel, associate professor of economics and public policy in the College of Arts and Science and the Truman School of Public Affairs at the University of Missouri, found that pension enhancements may not be a cost-effective or productive way to increase employee retention. Koedel says that these findings will be useful for informing pension policy as states attempt to address pension shortfalls while retaining effective teachers.