Retirees Out-Earn Teachers Who Replace Them

Look at the “TRS IL Comprehensive Annual Financial Report for the fiscal year ending June 30,2015”

http://trs.illinois.gov/pubs/cafr/FY2015/fy15.pdf

pdf page 100 has active member data.  Page 109 retirees.

 

In 2015,

  • Average salary for new teachers (under 5 years of service) is $47,796
  • Average salary for soon to retire teachers (25-29 years of service) is $94,410
  • and (30-34 years) $100,785

 

Then look at retiree data.

  • Those retired less than 1 year who worked 25-29 years have an average starting (and current) benefit of $3,222/month = $38,664
  • And 30-34 years experience have $5,646/month = $67,752

 

Note, those retired longer, may have a higher current pension.  Current pensions peak for those retired 10-14 years ago (that would be retired in 2002-2006)

  • 25-29 years experience have a current pension of $4,580 = $54,960
  • and 30-34 years experience have a current pension of $6,295 = $75,540

This tells us a couple things.

  1.  When a teacher who worked a full career (30+ years) retires, the retiree will have a starting pension ($67,752) for not working that exceeds her replacement’s starting salary ($47,796) for working.
  2. Retiree COLA (3% annually compounded) exceeds the amount the salary curves are going up.

From page 100 of the pdf (active teachers salary chart)

trs salary2015

From page 109 of the pdf (retired teachers pension chart)

pension data 2015 p 109

3 thoughts on “Retirees Out-Earn Teachers Who Replace Them

  1. In Glen Ellyn D 41, teachers can accumulate their sick days and possibly some of their other days (personal days, bereavement days, etc.) over 28 years of service and add these days to give them 2 extra years of service. 28 years + unused sick days=30 years.
    I assume that this is widespread.
    If we were able to get fiscally responsible people into the teachers’ contract negotiations, and just one district was able to make a dent in these type of overabundant benefits, well, you never know.

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