Tag Archives: deferred retirement compensation

Yesterday morning some of my Education Policy Center friends were down at the State Capitol (now, like me, they can hardly get out of their driveways… snow day!). They joined Dr. Michael Mannino, author of the Independence Institute report Deferred Retirement Compensation for Career K-12 Employees: Understanding the Need for Reform (PDF), for his informational presentation to the joint House and Senate Education Committee. New Ed News Colorado reporter Nancy Mitchell provided some colorful coverage of yesterday’s unusually well-attended proceedings (hey, I don’t even want to get out of bed at 7:30 AM): Rep. Michael Merrifield, D-Manitou Springs, drew applause from a standing-room only crowd when he closely questioned Michael Mannino, a University of Colorado professor who helped write the report. “Is it possible that your phrases like drastic tax increases and meltdowns could be fear-mongering on your part … in support of your political agenda?” Merrifield asked, an apparent reference to the report’s sponsor, the Independence Institute, which bills itself as a “free market” think tank based in Golden. “Could it be that you’re making an assumption to support your personal views that teachers shouldn’t have a defined benefit plan?” Merrifield asked at another point. “I want people to […]

That didn’t take long. The Rocky Mountain News is no more, but education reporter extraordinaire Nancy Mitchell is back. Hopefully the first of many, she has posted a lengthy piece on the proposed merger of the Denver Public Schools (DPS) and state PERA retirement systems. DPS officials are pushing the discussion forward, saying that the current set-up costs them funding that could be used in the classrooms: “We pay $685 more per pupil per year in pension and retiree costs than any of the other 177 school districts in Colorado,” [superintendent Tom] Boasberg said, “which comes out to $47 million more per year … “Translate that into teachers, that’s 700 or 800 teachers, that’s a reduction in our class size of 15 to 20 percent. Every class that has 30 students would be a class of 25 students.” Unfortunately, this article didn’t delve into the costly problem that University of Colorado at Denver professor Michael Mannino highlighted in his recent Independence Institute report Deferred Retirement Compensation for Career K-12 Employees: Understanding the Need for Reform (PDF). The average retired DPS career employee can expect to earn $627,570 more in benefits than his or her estimated retirement account balance. It’s a […]

I’m pretty smart for a 5-year-old. But sometimes I wander into a topic that’s just over my head. That doesn’t mean it’s not important, but it’s probably just best if I let the big people talk about it themselves. My friends in the Education Policy Center released a new Issue Paper today, called Deferred Retirement Compensation for Career K-12 Employees: Understanding the Need for Reform (PDF). It was researched and written by Dr. Michael Mannino from the University of Colorado Denver. Rather than try to explain the paper myself, here’s the summary from the Independence Institute website: To improve understanding of public K-12 retirement compensation, this Issue Paper provides historical estimates using a substantial sample of retiree characteristics and salary histories. Deferred retirement compensation from a hybrid defined benefit plan is defined as the difference between an employee’s estimated retirement account balance and the greater pension value she expects to receive. When accounting for K-12 employee compensation, large amounts of deferred compensation should be included. For the 846 Denver Public Schools retirees in the sample, average lump sum deferred compensation is $627,570. Wow, it would take a lot of piggy banks to put that much money in. But I think […]