Bellwether Education Partners is a national nonprofit focused on changing education and life outcomes for underserved children. Their work includes research on the adequacy and fairness of retirement systems for K-12 teachers.
A new Bellweather research report ranked teacher pensions by state in a particularly holistic manner. Specifically, they looked at pensions from both teacher and taxpayer perspectives, and they distinguished how retirement systems are expected to perform for teachers who are in them for the short, medium and long term.
Accordingly, their rankings turned on a large number of variables. From a teacher’s perspective, for example, they considered the adequacy of benefits for retirement, COLAs, interest credit on early withdrawals and availability of alternative options — as well as whether the plans are adequately funded. From a taxpayer’s perspective, their criteria included costs of amortizing unfunded debt, investment returns, normal cost and state contributions compared to what actuaries suggest.
Illinois overall ranking compared to other states and Washington, D.C. was dead last, graded an ‘F.” The segment from the report specifically on Illinois is reproduced below.
Kentucky and New Jersey are right behind Illinois at the bottom. Top ranked states are South Dakota, Tennessee and Washington.
The report did not cover Chicago teachers, who are in a separate pension from the Illinois State Retirement System, which covers all other public school K-12 teachers in the state.
-Mark Glennon
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Woodstock CUSD 200 has taxed its residents at around 2.75% of full fair market home value for well over a decade. Full tax rate to live in Woodstock hovers around 4% for over a decade.
YES raising tax levies causes depressed home (property) values (outside TIFs).
What is Chicago’s excuse for not raising property tax levy to fully fund its pension obligations?
WHY aren’t teachers out there on picket lines DEMANDING that their pension funds be fully funded by Chicago property taxpayers?
The August 31, 2021 Bellwether study titled, “Teacher Retirement Systems: A Ranking of the States,” covered Tier 2?
And not Tier 1?
Also Bellwether has never mentioned in any of their reports that in the majority of school districts in Illinois, teachers contribute little to nothing to the TRS pension fund.
For such districts, their reports are incorrect.
I can’t speak for teachers in the suburbs and the city, but outside of the suburbs, school districts do not pay for teacher’s pension contributions. And if they do that it is reflected in the salary. My best friend worked for a school district in the Central Il. area that did this and her salary was several thousand dollars less than surrounding areas, but she didn’t care because it all evens out in the end. My husband and I are both teachers and the most we have ever seen is 1.5-2% that a district pays and this can change with… Read more »
“The report did not cover Chicago teachers, who are in a separate pension from the Illinois State Retirement System, which covers all other public school K-12 teachers in the state.”
”…Illinois State Retirement System…”
As you know it is the “Teachers Retirement System of the State of Illinois.”
According to the study, the normal cost of benefits is 19.7%. That seems high and doesn’t correspond to what’s been reported on the TRS CAFR. I’m pretty sure Tier 1 pensions on their own do not have that high a normal cost.