Below is a fantastic video by Bellwether Education Partners that explains how teacher pensions work, in less than 3 minutes!
In The Pension Pac-Man: How Pension Debt Eats Away at Teacher Salaries Chad Alderman explains how rising retirement costs penalize today's teachers:
It may be counterintuitive, but higher retirement contributions have not translated into better retirement benefits for teachers. In fact, in the wake of the recent recession, states accelerated a trend of offering newly hired employees less generous benefits than what was provided to their older peers. Even as employer contributions toward teachers’ retirement plans are at all-time highs, those same employers are actually offering new teachers worse benefits. After all those cuts, today is the worst time to become a teacher in decades, at least in terms of net retirement benefits.
What's causing this situation? Unfortunately for teachers, the rising costs of their retirement systems do not reflect improved benefits, it's primarily a function of debt.
Be sure to read the full report by the Bellwether Education Partners here.
And to keep up with the latest from NPRI on Nevada PERS, click here.