The Big Squeeze: Retirement Costs and School District Budgets. Ohio Pension Reform in Cleveland: New Teachers Beware

At first glance, the recent teacher-retirement reforms in Ohio seem to bring good fiscal news to school systems in the Buckeye State. With Senate Bills 341 and 342--and a series of cutbacks on retiree healthcare--the Cleveland Metropolitan School District is projected to spend less on retirement costs in 2020 than it does today. But these reforms come at a big price. While much of the burden was taken off school districts, it now falls heavily on the shoulders of Cleveland's newest teachers. This report projects the city's future retirement obligations and illuminates how retirement reform can help solve the pension-funding problem--and some of the accompanying challenges. [For the summary report, see ED598726.]