Life comes at you in waves. You graduate high school, watch friends start careers, get married, and have kids. Then social media shows you their children repeating the cycle. As a member of the Pacific High School Class of 1999, I didn’t expect to reach the retirement wave so soon.
Yet a recent post stopped me: a high school classmate, still in his mid-40s, announced his retirement after 25 years in Missouri public schools. Most recently a principal earning roughly $130,000 per year, he is now eligible for approximately $71,500 in annual (with cost-of-living adjustments) pension benefits for the rest of his life. He can also continue working and earning additional income.
He is retiring at exactly the age when most professionals hit their career peak—when experience, leadership, and judgment are most valuable. And that’s the problem.
Missouri’s Public School Retirement System (PSRS) is pushing talented educators out of the classroom at the very moment students and schools need them most. This isn’t just a fiscal issue. It’s a direct loss to Missouri’s school children.
My classmate is doing exactly what the system incentivizes him to do. The “25-and-Out” provision hands him a guaranteed lifetime annuity worth over $3 million in today’s dollars. He’d be foolish not to take it. But Missouri schools are left without a proven leader right when his institutional knowledge and expertise could have the greatest impact.
This is the perverse reality of the current defined-benefit system. It encourages strong teachers and administrators to leave mid-career, creating turnover, knowledge gaps, and disruption for students. Districts then spend time and money searching for replacements, often settling for less experienced candidates.
Reform is long overdue. What could Missouri do?
- Raise the minimum age or service requirements for unreduced early retirement.
- Adjust benefit formulas for new hires to match longer careers and lifespans.
- Offer new employees a hybrid or defined-contribution plan with portability and shared risk.
Current retirees and vested members should be protected. But going forward, incentives should align with what’s best for students. Competitive benefits matter, but not at the expense of keeping great educators in our schools during their most productive years.
