Date registered: Jul 2007
Vehicle: 1973 450 SL
Location: Castle Rock, CO
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Underpaid teachers--the whole story
Our Poor Underpaid Teachers
In other threads I have asserted that one cannot just consider salary to describe teacher pay; you also have to add in the generous benefits. Today in the RMN is statistical data from the Denver School district to support my assertion. The study was funded by two local foundations, one leaning left. The question being addressed was why the district looses its experienced staff before normal retirement. Here are the numbers assuming a teacher begins teaching at age 25.
Decade 1 Salary & Pension $446,259
Decade 2 Salary & Pension $607,779
Decade 3 Salary & Pension $1,400,000
You can see the plan back-loads the pension earning and skimps the newcomers. These teachers can retire at age 55 at near full salary and with a life expectancy of 30 yrs till 85 it is possible to be paid more in retirement than they earned in salary while employed for 30 years.
So the answer to the question is that the older teachers are retiring early because for each year they work, they are losing a year of retirement pay for doing nothing.
Another shocking info: out of the approx $7200 allocated for each student annually, $1420 of that is for retiree benefits.
The best deal of all is the retirement plan is not the 401K which most of the private sector has gone to (a defined contribution plan) but instead is the defined benefit plan which requires the taxpayer to make up any difference between fund earnings and the guaranteed retirement benefit.
So when you hear how teachers are shortchanged you'll know the truth.
Charter member of the Vast Rightwing Conspiracy and proud of it.
God Bless the America we're trying to create.
--Hillary Rodham Clinton
Last edited by bottomline1; 03-18-2008 at 08:47 PM.