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Andrew Rotherham 
October 16, 2014 
Colorado Pensions: Teacher Quality and Retirement Security
2 
Teacher pension plans are not meeting the needs of today’s workforce. This is a broader problem than just an education issue.
3 
Teacher quality issues have largely been ignored in pension discussions. 
• 
Media and legislators pay more attention to the huge financial numbers, ignoring the smaller effects on individual teachers. 
• 
States legislatures respond accordingly. 
• 
Recent changes have made pension plans worsefor teachers. 
• 
Despite some recent improvements, all but a handful of states lock teachers into unfair and insecure pension plans.
4 
This is a problem, because the teaching profession has changed and become more mobile. 
0% 
1% 
2% 
3% 
4% 
5% 
6% 
7% 
0 
5 
10 
15 
20 
25 
30 
35 
Mode: 15 years 
1987-88 
0 
5 
10 
15 
20 
25 
30 
35 
2007-08 
Teacher experience as share of workforce 
Mode: 1 year
5 
In Colorado, only a small minority of teachers are projected to stay for an entire career. 
0% 
20% 
40% 
60% 
80% 
100% 
25 
30 
35 
40 
45 
50 
55 
60 
65 
Age 
Cohort survival for 25 year-old females 
Half leave within 3 years 
Only a tiny fraction make it to age 60
6 
Colorado’s pensions are not designed for its teaching workforce. 
$0 
$200,000 
$400,000 
$600,000 
$800,000 
$1,000,000 
25 
30 
35 
40 
45 
50 
55 
60 
65 
Age 
Teacher pension wealth, by age 
Very little retirement savings for early-and mid-career teachers 
Pension wealth spikes at age 60
7 
Colorado should look for solutions to address both financial AND human capital problems. 
• 
Colorado must find ways to pay down its existing debt 
– 
Share the debt burden as widely as possible, not just for teachers or schools. 
– 
If possible, find a new revenue stream. 
• 
At the same time, Colorado should stop making the hole bigger 
– 
ALL teachers deserve a path to a secure retirement. 
– 
Social Security should be part of the solution.
8 
For more info, please visit:

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Bellwether "A Great Teacher in Every Classroom" Slides

  • 1. Andrew Rotherham October 16, 2014 Colorado Pensions: Teacher Quality and Retirement Security
  • 2. 2 Teacher pension plans are not meeting the needs of today’s workforce. This is a broader problem than just an education issue.
  • 3. 3 Teacher quality issues have largely been ignored in pension discussions. • Media and legislators pay more attention to the huge financial numbers, ignoring the smaller effects on individual teachers. • States legislatures respond accordingly. • Recent changes have made pension plans worsefor teachers. • Despite some recent improvements, all but a handful of states lock teachers into unfair and insecure pension plans.
  • 4. 4 This is a problem, because the teaching profession has changed and become more mobile. 0% 1% 2% 3% 4% 5% 6% 7% 0 5 10 15 20 25 30 35 Mode: 15 years 1987-88 0 5 10 15 20 25 30 35 2007-08 Teacher experience as share of workforce Mode: 1 year
  • 5. 5 In Colorado, only a small minority of teachers are projected to stay for an entire career. 0% 20% 40% 60% 80% 100% 25 30 35 40 45 50 55 60 65 Age Cohort survival for 25 year-old females Half leave within 3 years Only a tiny fraction make it to age 60
  • 6. 6 Colorado’s pensions are not designed for its teaching workforce. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 25 30 35 40 45 50 55 60 65 Age Teacher pension wealth, by age Very little retirement savings for early-and mid-career teachers Pension wealth spikes at age 60
  • 7. 7 Colorado should look for solutions to address both financial AND human capital problems. • Colorado must find ways to pay down its existing debt – Share the debt burden as widely as possible, not just for teachers or schools. – If possible, find a new revenue stream. • At the same time, Colorado should stop making the hole bigger – ALL teachers deserve a path to a secure retirement. – Social Security should be part of the solution.
  • 8. 8 For more info, please visit: