| Abstract: | Public school teachers receive on retirement a pension typically equaling 75% of the average salary earned during the three peak years. While the teachers pay part of the costs of their defined benefit pension through payroll deductions, most of the cost is subsidized by the state. The pension subsidy, a far from neglible component of the per pupil cost of instruction, is particularly high in those school districts that pay high salaries and enjoy low student/teacher ratios. It is a regressive subsidy highly correlated with school district income and wealth. Several alternative reform measures are considered. |
