According to new data from the Bureau of Labor Statistics, teacher retirement costs are at an all-time high.
As of March 2016, retired public school teachers receive $6.67 per hour worked during their careers. Compare that to March 2006, when they received less than half that amount: $3.26 per hour worked.
According to analysis from Chad Aldeman of Bellwether Education Partners, that’s more than any other profession. “Teachers won’t ever see most of this money,” Aldeman writes. “It’s money that must be used to pay down unfunded pension liabilities, not actual retirement benefits. On average, for every $10 states and districts contribute toward teacher retirement, $7 goes toward paying down past pension debt, and only $3 goes toward benefits for current teachers.”
The last time costs declined in a quarter was from March 2011 to June, when the cost per hour worked declined by one cent.
Teacher retirement costs are now 11 percent of their total compensation, up from 6.5 percent in March 2006.
Aldeman found that teacher retirement costs are more than twice as high as those of the average civilian employee, both in benefits per hour of work ($6.67 vs. $1.74) and percentage of compensation (10.9 percent vs. 5.1 percent).
Jason Russell is a commentary writer for the Washington Examiner.
