By Elizabeth Ling, DFER NY State Director
Here is another example of New York charter schools using their greater autonomies to develop innovative practices, in this case achieving operating efficiencies during this time where increasing pension costs are a particular concern for school districts. A recent Fordham Institute study reports that, between 2004 and 2010, district pension costs nationally increased from 12% to over 15% of salaries, amid concern that public pension plans are underfunded.
The study reports that some New York charter schools are opting out of the traditional teacher-pension system, with only 28% of the state’s charters participating in the state or city teachers retirement systems (NYSTRS and TRSNYC, respectively) in 2008-9. Those that opt-out cite the high cost of employer contributions. In 2009, the annual employer contribution rate to NYSTRS was 6.19% of an employee’s annual salary, and that to TRSNYC was an astonishing 30.8% (by far the highest in this six-state study).