EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks.
“But the Pension Fund Was Just SITTING There …”: The Politics of Teacher Retirement Plans
Frederick M. Hess () and
Juliet P. Squire ()
Additional contact information
Frederick M. Hess: American Enterprise Institute, Washington, DC
Juliet P. Squire: American Enterprise Institute, Washington, DC
, 2010, vol. 5, issue 4, pages 587-616
Education Finance and Policy Abstract:
The tension at the heart of pension politics is the incentive to satisfy today's claimants in the here and now at the expense of long-term concerns. Teacher pensions, in particular, pose two challenges. The first is that political incentives invite irresponsible fiscal stewardship, as public officials make outsized short-term commitments to employees. The second is that incentives hinder modernization, as policy makers avoid the politically perilous task of altering plans ill suited to attracting talent in the contemporary labor market. The alignment of the political stars has helped some states and localities to address the first challenge, but far too few have demonstrated a willingness to tackle the second. We illustrate the political dynamics through discussions of pension plans in New Jersey, Oregon, and San Diego, California, and suggest several political strategies that could make pension challenges more tractable and encourage public officials to be responsible fiscal stewards or to revisit anachronistic retirement systems. © 2010 American Education Finance Association
Keywords: teacher retirement systems; teacher pension plans (search for similar items in EconPapers)
JEL-codes: I21 I22 J26 (search for similar items in EconPapers)
References: Add references at CitEc Citations Track citations by RSS feed
Downloads: (external link) http://www.mitpressjournals.org/doi/pdf/10.1162/EDFP_a_00016 (application/pdf)
Access to PDF is restricted to subscribers.
Related works: This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:tpr:edfpol:v:5:y:2010:i:4:p:587-616
Ordering information: This journal article can be ordered from http://www.mitpressjournals.org/loi/edfp
Access Statistics for this article
Education Finance and Policy is edited by
Thomas A. Downes and Dan Goldhaber
More articles in Education Finance and Policy from MIT Press
Series data maintained by Karie Kirkpatrick ().