Welcome to the Profit of Education website. Continuing the conversation begun in the book Profit of Education, we discuss the latest economic evidence on education reform.

Pension picture

Cory Koedel and Michael Podgursky have a new picture that shows some of the unintended consequences of our weird teacher pension system. The longer a teacher works the higher her pension, but the longer she has to wait before starting to collect. The value of the pension accumulates gradually early in a career; skyrockets as early retirement deals kick-in; and then falls quickly when a teacher is in her 50s.

Here’s the picture, and no this doesn’t seem like a sensible way to design a pension system.

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