Public Pensions

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The Labor Center conducts research on pensions for teachers and other public sector workers, focusing on risks, cost-efficiency, and workforce retention impacts of traditional defined-benefit pensions compared to 401(k)-style individual investment accounts.

Research & Publications

December 1, 2019 -

Nari Rhee

Is it time to retire traditional teacher pension plans?

As teachers across the country mobilize for education funding and fair pay, pensions are high on their list of priorities. What they know from experience, and research confirms, is that pensions are a win-win for teachers and schools, delivering superior retirement security and retaining teachers for decades. Conversely, abandoning pensions in favor of 401(k) or cash balance plans would come at great cost to teacher livelihoods and erode education quality.

January 8, 2019 -

Nari Rheeand Leon F. Joyner, Jr.

Teacher Pensions vs. 401(k)s in Six States

Most public school teachers are covered by traditional pensions that encourage and reward long service. In this study, we determine whether most teachers working in classrooms today can expect to…

January 8, 2019 -

UC Berkeley Labor Center

RELEASE: Traditional pensions provide greater benefit than 401(k)s for U.S. teachers

A new study from University of California, Berkeley and the National Institute on Retirement Security shows that for the vast majority of teachers, existing pension benefits provides a higher, more secure retirement income compared to a cost-equivalent 401(k)-style plan. What’s more, pensions keep teachers in classrooms.

June 7, 2018 -

Sarah Thomasonand Annette Bernhardt

The Union Effect in California #2: Gains for Women, Workers of Color, and Immigrants

In this report, we present data for the state of California on the union advantage in wages and employer-sponsored health and retirement benefits for women, workers of color, and immigrants.

March 21, 2018 -

Nari Rhee

Most Kentucky Teachers Are Significantly Better off with Pensions than 401(k)s

The results of our analysis indicate that the current Kentucky TRS pension is better matched to meet the retirement needs of the teaching workforce than a 401(k)-style plan.

April 5, 2017 -

Nari Rhee

Teacher Pensions vs. 401(k)s: Part 2 — A Bird in the Hand Is Worth Two in the Bush

This blog post is the second in a two-part series explaining why recent studies claiming that teachers are better off with 401(k)s than pensions because of distributional issues and…

February 9, 2017 -

Nari Rhee

Teacher Pensions vs. 401(k)s: Part 1 — Look at the Whole Workforce, Not Just New Entrants

Opponents of teacher pensions can’t seem to help recycling the deeply flawed argument that because of high attrition rates among new teachers, the teaching profession would be better off…

March 8, 2016 -

Nari Rhee

Most California Teachers Working Today Are Here for the Long Haul — and Better Off with a DB Pension

Early career turnover is a serious policy concern for public education — but is it the sole basis on which to evaluate the suitability of teacher retirement benefits? Absolutely not.…

February 4, 2016 -

Nari Rheeand William B. Fornia

Are California Teachers Better off with a Pension or a 401(k)?

Pensions form a significant part of public school teacher compensation, and provide the primary source of retirement security for teachers, many of whom are not included in Social Security.

January 4, 2012 -

Nari Rhee

Potential Impact of Governor Brown’s Pension Reform Plan on Low Wage Workers

On October 27, 2011, Governor Brown released his “Twelve Point Pension Reform Plan” designed to reduce pension and retiree health costs for state and local government. The plan includes several…

April 1, 2010 -

Nari Rhee

Analysis of Proposed Ballot Initiatives for City of Redding Retirement Benefit Reductions

This report analyzes some of the social and economic costs related to two initiatives proposed by the City of Redding, which would make significant changes in key retirement benefits that…