Teacher Benefits

There was an article last Wednesday in the Commercial Appeal with a sidebar headed TEACHER BENEFITS. This is a subject that I have been investigating for some time. Consider the following.

  • Teachers work for 10 months, not 12. See schedule.
  • See the City of Memphis City School teachers’ union contract.
  • The CA article said that as a general rule the pension for a full teacher retiree equals 48% of the last year’s earnings according to Ken Foster, Memphis Education Association executive director. See the attached sheet from the latest Tennessee Consolidated Retirement System financial report. This shows that with an average salary of $50,000 and 25 years of service they receive 79.4% of average final salary and with 35 years of service they receive 95.1% of average final salary. This is a combination of their defined benefit pension plan and social security.
  • The percentage of payroll that is contributed by the Memphis City School system for pensions is between 13% and 15% depending on whether it is the teachers or the other employees. This is far higher than the percentage of payroll contributed by the City of Memphis and Shelby County which is well below 10%.

 

We need to rein in teacher pensions and benefits, do away with tenure after only three years, reduce the bureaucracy and concentrate on quality education and bring competition to education through the introduction of parental choice.

3 Responses to “Teacher Benefits”

  1. d dubois says:

    AMEN!! ALL ITEMS SUCH AS PENSIONS AND RAISES BY PUBLIC EMPLOYEES
    NEED TO BE VOTED ON BY THE TAXPAYERS, NOT BY THE EMPLOYEES OR
    THEIR “BOARDS” OR “REPRESENTATIVES” — TOO MANY FOXES IN THE
    HEN HOUSES.

  2. cathyntn says:

    Joe, I too agree w/your closing statements (as does my spouse, a MCS teacher). “We need to rein in teacher pensions and benefits, do away with tenure after only three years, reduce the bureaucracy and concentrate on quality education and bring competition to education through the introduction of parental choice.”
    I want to point out one thing-5% of teachers’ pay is deducted toward retirement, so MCS is not paying out 13-15%, it’s more like 8-10%. Still way too much. Pension should be similar to corporations-matching % that teachers put into system.

    Get rid of the unions-they’re a scam and they really don’t help/protect teachers. The bureaucracy w/i MCS is killing the schools and teacher motivation. Not to mention the oodles of money they waste.

  3. joe saino says:

    Teachers pay 6.2% for social security and 5% for the defined benefit pension plan which is run by the Tennessee Consolidated Pension Plan. The MCS (taxpayers) pay 6.2% for social security and now pay 9.74% or 9.05% for the defined benefit plan. They pay this to the State Pension Plan and the 6.2% to the Social Security Administration. Therefore the cost to the taxpayers is between 15 to 16 percent and the cost to the employee is 11.2%.

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