MU study finds parts of teacher pension funds are being used to pay off debt

11 months 4 days 19 hours ago Wednesday, September 14 2016 Sep 14, 2016 Wednesday, September 14, 2016 5:50:00 PM CDT September 14, 2016 in News
By: Rachel Leigh, KOMU 8 Reporter
loading

COLUMBIA - Nearly 11 percent of Missouri public school teacher pension plans are being used to pay for pension debt, according to a University of Missouri Study

Associate professor of economics and public policy Cory Koedel headed the study. 

Koedel said when teachers get their checks, 14.5 percent is taken out to pay for their pension. 

"I would imagine that most people think that means that is paying for their pension, which they might not like the 14.5 percent but at least they think they're paying for their own pension," Koedel said. "There's nothing that says, oh by the way a big chunk of this is actually just debt. There's nothing in their check that says that." 

Koedel said if it were not for the debt, as of 2013, teachers should only have to pay 9 percent. 

"I don't think it's reasonable to not make that assumption that when it says money's coming out of their check to pay for their pension benefits that it's actually paying for their own benefits," Koedel said. 

KOMU 8 News reached out to Public School and Education Employee Retirement system of Missouri (PSRS). PSRS officials said they were unavailable for an interview and haven't had a chance to read the study.

According to its website, "The Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) provide a significant and stable source of retirement, disability and survivor benefits to Missouri's public school teachers, school employees and their families." 

Koedel said he isn't sure why there hasn't been public concern about paying high pensions. 

"I think everyone should care because the money being taken to pay for these pension debts is affecting the services that we as tax payers are paying for. Past costs are coming back to haunt us, and it's going to lower the quality of services that the typical tax payers are going to get for their money." 

Koedel said if no action is taken debts will keep piling up, creating repercussion is the education system. 

"It's not like the building is going to fall down tomorrow and I get that, so many people aren't that worried about it. At the same time, the continued tax on the system from these growing pension tax is going to keep degrading education services." 

 

 

More News

Grid
List
JEFFERSON CITY – In preparation for a large number of visitors to Missouri for Monday's solar eclipse, the State Emergency... More >>
8 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 11:49:00 PM CDT August 19, 2017 in News
JEFFERSON CITY - The incoming freshmen at Blair Oaks High School will become the first class to not have a... More >>
11 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 8:59:00 PM CDT August 19, 2017 in News
COLUMBIA – Angela Speck, the director of astronomy at the University of Missouri, gave a presentation titled, "Doing Science in... More >>
16 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 4:36:00 PM CDT August 19, 2017 in News
PIKE COUNTY, Mo. - A man was charged with first degree murder and armed criminal action after Alexander Koch died... More >>
16 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 4:32:00 PM CDT August 19, 2017 in News
COLUMBIA - With mid-Missouri preparing for the upcoming eclipse on Monday, Laws Observatory played host to an event made to... More >>
17 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 3:18:00 PM CDT August 19, 2017 in News
ST. LOUIS (AP) — A former school bus driver in eastern Missouri has been sentenced to 20 years in prison... More >>
18 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 1:58:58 PM CDT August 19, 2017 in News
JEFFERSON CITY - With the eclipse nearly here, crews in Jefferson City were busy preparing for festivities Saturday. On... More >>
19 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 1:19:00 PM CDT August 19, 2017 in Eclipse Planning
KANSAS CITY (AP) — A Confederate memorial in Kansas City was vandalized with graffiti overnight. Local media show someone... More >>
20 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 12:41:00 PM CDT August 19, 2017 in News
JEFFERSON CITY (AP) — Missouri's child abuse hotline now accepts out-of-state calls. First lady Sheena Greitens said she learned... More >>
21 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 11:06:17 AM CDT August 19, 2017 in News
COLUMBIA – The University of Missouri will host and sponsor numerous events this weekend leading up to Monday’s total solar... More >>
21 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 10:58:00 AM CDT August 19, 2017 in News
CHAFFEE (AP) — A southeast Missouri man is facing murder conspiracy charges for allegedly trying to hire a hit man... More >>
21 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 10:55:54 AM CDT August 19, 2017 in News
KANSAS CITY (AP) — In towns and cities along the path of the solar eclipse, some school districts are seizing... More >>
21 hours ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 10:47:03 AM CDT August 19, 2017 in News
COLUMBIA - Firefighters will be hitting the street with their boots in their hands. Columbia Fire Department will... More >>
1 day ago Saturday, August 19 2017 Aug 19, 2017 Saturday, August 19, 2017 5:00:00 AM CDT August 19, 2017 in News
JEFFERSON CITY - Helias Catholic High School won’t have to borrow Jefferson City High School’s stadium anymore after it opened... More >>
1 day ago Friday, August 18 2017 Aug 18, 2017 Friday, August 18, 2017 7:18:00 PM CDT August 18, 2017 in News
JEFFERSON CITY (AP) — Missouri State Parks officials say they can't verify that solar eclipse glasses the agency sold meet... More >>
1 day ago Friday, August 18 2017 Aug 18, 2017 Friday, August 18, 2017 6:48:40 PM CDT August 18, 2017 in Eclipse Events
ST. LOUIS (AP) — Attorneys for a Missouri man convicted of killing a former St. Louis Post-Dispatch reporter 19 years... More >>
1 day ago Friday, August 18 2017 Aug 18, 2017 Friday, August 18, 2017 6:30:00 PM CDT August 18, 2017 in News
CALLAWAY COUNTY - Seth MacVittie, 36, of Fulton, is under investigation of escape from the Callaway County Jail Friday. ... More >>
1 day ago Friday, August 18 2017 Aug 18, 2017 Friday, August 18, 2017 6:07:00 PM CDT August 18, 2017 in News
PETTIS COUNTY - The man shot and killed at a trailer park outside the Sedalia city limits Thursday afternoon has... More >>
1 day ago Friday, August 18 2017 Aug 18, 2017 Friday, August 18, 2017 5:12:00 PM CDT August 18, 2017 in Continuous News
Columbia, MO
Broken Clouds 73°
9am 76°
10am 80°
11am 83°
12pm 86°

Select a station to view its upcoming schedule:

Coming Up Next

8:00a
Sunday TODAY with Willie Geist
9:00a
Meet the Press
10:00a
Give
8:30a
The Key of David
9:00a
Campmeeting
10:00a
Discover the Truth

Tonight's Schedule

6:00p
Gymnastics
8:00p
American Ninja Warrior
6:00p
Cliffhanger
8:00p
Marvel's Agents of S.H.I.E.L.D.
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld