How Have Teacher Pensions Changed since the Great Recession?

Brief

How Have Teacher Pensions Changed since the Great Recession?

February 10, 2020

Abstract

Most states provide less generous pensions to teachers hired in 2018 than to teachers hired in 2008. Over the past decade, 43 states raised the contributions that teachers must make to their retirement plan or cut the retirement benefits they will receive. Nearly one-half of state teacher plans raised the age at which teachers can begin collecting their pension, and nearly one-third reduced the share of salary that a pension replaces. Among plans that made these changes between 2008 and 2018, the average retirement age increased almost five years and the average replacement rate fell nearly 6 percentage points.

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