Later Retirement Doesn’t Harm School Districts’ Payroll Costs
The notion that forcing teachers to work an additional five years before retirement will cost districts money came up during my appearance on the Dan Yorke Show, last week, and it apparently has some currency in the General Assembly. Obviously, though, a replacement hired on a five-year delay will cost less than one hired earlier until he or she hits step ten, so to see how the balance works out, I’ve taken a look at the numbers.
The upshot is that, in the long run, the later retirement saves the district money in salary — which doesn’t factor in the post-employment benefits, like healthcare, that it would have to pay for five additional years of retirement under the current system. (In some districts, a later retirement date would eliminate their post-employment healthcare costs entirely.)