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Research conducted to determine benefits of educators' retirement plans

FRIDAY, JANUARY 21, 2011 18:48 PM

As the country pushes heavily for education reform, many individuals are wondering what this overhaul will mean for teachers. While some educators are being let go, others are choosing to retire earlier, as there are not enough funds in the public education sector.

There is currently a study being conducted at the University of Missouri to determine how the new changes to the education system, which includes lack of funding, will effect teachers' retirement benefits.

"The simple fact is that educator pay and retirement benefits are the chief expenditures of school districts nationwide," said one of the authors, Michael Podgursky. "No one has done the type of analysis we've done on pension benefits, and until we re-examine these policies, our school districts will face increasingly severe fiscal challenges."

The report finds that the benefits are a draw for many people who are looking to get into a career in teaching. The plans are defined-benefit pensions, which guarantee a specific monthly payment. However, it was noted that the plans are designed to draw workers in and then push them to an early retirement, which could be a good thing during reform.