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Future retirement expense for teachers could be costly for Shelby County, taxpayers

The estimated costs for extended health-care and life-insurance benefits for teachers in Shelby County and the six municipalities could carry a hefty price tag for taxpayers, according to a report from the Commercial Appeal.

In the article, SCS Superintendent Dorsey Hopson II said the unfunded liability poses a long term problem. Hopson also said the district did not set aside any funds in the 2014-15 proposed budget for future retiree health-care benefits because it would have hurt students.

These benefits prove as an effective recruitment tool for school districts, according to teacher advocates and union officials mentioned in the article.

The Commercial Appeal also reported that as of June 30, 2013, the former Memphis City Schools’ unfunded other-post employee benefits liability was $1.13 billion and the pre-merger unfunded liability for SCS was $338.6 million.

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