City Hall and the teachers union announced a landmark deal Wednesday to let educators retire earlier with a full pension in exchange for a merit-pay system largely tied to student test scores.
Under the agreement, current public school teachers would be able to retire with full benefits at 55 if they have logged 25 years in the classroom and agree to make larger pension contributions.
In exchange for the pension sweetener - which needs state approval - the union will sign off on a plan to give teachers bonuses if their schools significantly lift student test scores, improve attendance and meet other criteria. The average bonus would be $3,000 per teacher.
"In the private sector, cash incentives are proven motivators for producing results," Mayor Bloomberg said, while announcing what he called a "historic" deal. "The new school-wide bonus program will have the exact same effect."
Funded with $20 million from a private business group, the Partnership for New York City, and two other foundations, the bonuses would flow to teachers in as many as 200 struggling schools as soon as this year.
If there's enough money to go around, the plan is to expand the bonuses to 400 schools next year.
The United Federation of Teachers has agreed to a handful of small, limited programs to pay some teachers more than others, but this is the first time the union consented to a wide-scale plan to tie teacher pay to test scores.
Though union stalwarts tend to resist merit-pay schemes, President Randi Weingarten said this deal is different because teachers will decide whether to participate and because entire schools will benefit.
"When a school works as a team, when teacher voice is respected, when people are collaborative in partnership, schools succeed," she said.
If participating schools fulfill requirements to receive bonuses, a committee of two teachers and two administrators will decide how to distribute the cash.
The committee can decide to give every educator $3,000 or it can give some teachers more than others. They can't dole out cash by seniority. If the committee doesn't agree, the school will forfeit its prize.
The change to the retirement rules has been something the union has sought for years.
While educator pension costs top $1.5billion, city officials say the new deal won't cost taxpayers anything.
The changes will be paid for by increased contributions to the pension plan by teachers who choose to participate - and those who will start their teaching careers next year.
Teachers now pay 3% of their salaries for their first 10 years and then nothing until they retire.
Under the new agreement, Albany must approve the pension changes. If that fails, the agreement is scrapped.
If Albany signs off, teachers who want to participate must opt in within six months. They would pay 4.85% until they have taught for 10 years, and then 1.85% for at least the next 15 years. New teachers would pay the 4.85% for 10 years and 1.85% until they retire. But they can't retire until they've taught 27 years.
The Post of course, quotes a merit-pay advocate...how typical...
NY Post -Yoav Gonen Education Reporter - 'Historic' Merit Pay For Teachers
NY Sun - Elizabeth Green - Deal on Teacher Merit Pay May Sway National Debate
