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• W2440008 abstract "Introduction Policy changes in state pension programs for public school educators typically affect not only current and future retirees, but also social conditions (Deaton, 1989), labor market forces (Clark, Craig, & Wilson, 2003), and professional preparation and state licensing (Kowalski & Sweetland, 2002). A review of the literature, however, reveals that surprisingly little research has been conducted on the development, revision, and effects of state educator pension funds since Taylor's (1986) analysis approximately two decades ago. Early retirement incentive programs (ERIPs), for example, were adopted widely during the 1970s and 1980s to correct what many analysts (e.g., Carter & McGowan, 1970; Hyde, 1974) described as a glut of teachers. Proponents successfully argued that their proposal would benefit taxpayers, the education profession, and pension fund members-claims that usually were not challenged empirically until the provisions were enacted. Policymakers in many states are again being pressured politically by education special interest group lobbyists to use state pension funds to ameliorate an alleged disequilibrium in educator labor markets. This time the perceived problem is a critical shortage of qualified educators and the proposed solution is retire-rehire policies (RRPs). In essence, RRPs permit an administrator to retire, even prematurely under ERIP provisions, and then return to work in an administrative position in the same state, receiving a regular salary and pension benefits simultaneously (Gains, 2002). In some states where such policy is basically unrestricted (e.g., Ohio), superintendents and principals can retire as early as age 50 and return to work immediately (with a very minor penalty) or after 30 days (without any penalty) even in the very same position from which they retire (Kowalski & Sweetland, 2002). Three commonalities between RRPs and ERIPs are especially cogent. First, both are supposed to ameliorate labor market disequilibrium; ERIPs are intended to diminish labor supply, and RRPs are intended to increase labor supply. second, both are expected to yield economic benefits for the state; ERIPs accelerate personnel turnover resulting in lower overall salaries, and RRPs encourage employers to negotiate concessions from rehired employees. Third, both have political value in that they are widely supported by pension fund members and their state organizations (Sostek, 2003). Three purposes are addressed in this paper. First, data pertinent to P-12 educator pension funds, ERIPs, and RRPs are summarized. second, data for all state pension funds are reported and then states are categorized based on rehire restrictions. Third, possible associations between levels of rehire restrictions and two other variables-scope of pension fund membership and mandatory Social security participation-are analyzed. Scope pertains to the types of public employees included in the fund covering P-12 public school administrators; it is treated here as a political variable based on the assumption that broad membership is politically advantageous (i.e., the larger a fund's membership, the greater the political influence). Social Security participation is related to the effects of having a federal supplemental retirement program; it is treated here as an economic variable based on the assumption that a supplementary plan may deter policymakers from broadening state pension fund benefits (i.e., policymakers in states without Social security participation may be more inclined to increase benefits such as RRPs). Outcomes reported here reveal considerable variability across states with respect to retire-rehire restrictions. This variance ranges from not allowing rehiring to allowing rehiring without restrictions. Neither the political nor economic variable examined appears to have had a discernible influence on the levels of these restrictions. The uncertainty surrounding the future of RRPs magnifies the relevance of possible negative consequences and establishes the need for state-level pension fund studies. …" @default.
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• W2440008 date "2005-04-01" @default.
• W2440008 modified "2023-09-24" @default.
• W2440008 title "Retire-Rehire Policy in State Pension Programs for School Administrators." @default.
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