Welcome to the latest edition of This Week in Pensions! We have gathered the top stories about pensions and retirement security from the previous week.
Thousands of California Teachers Laid Off Amid Budget Cuts
Roughly 3,000 California educators are losing their jobs as districts grapple with funding shortfalls resulting from declining enrollment and cuts in federal funding. While administrators argue that these layoffs are necessary, educators and their unions are sounding the alarm over misplaced priorities—pointing to overflowing reserve funds and increasing administrative salaries.
California Teachers Association President David Goldberg said, “We have districts sometimes who lead with layoffs and have millions of dollars in reserves and say that’s for a rainy day. It is raining now. It is pouring now.” Yet too often, those in power seem to close their umbrellas and walk away. Some districts have offered retirement incentives to mitigate layoffs, but for many communities, the damage is already done.
This mass reduction in the educator workforce not only harms the individuals laid off—it shakes public trust in the school system and disrupts students’ educational continuity, “laying people off and devastating communities actually cuts away people’s confidence in those schools,” said Goldberg.
Pennsylvania: A Statewide Teacher Shortage Crisis
Meanwhile, Pennsylvania is facing a different—but equally urgent—crisis: a severe shortage of teachers across much of the state. A new analysis by Penn State education policy professor Ed Fuller, commissioned by Teach Plus Pennsylvania and the #PANeedsTeachers coalition, evaluated educator staffing levels in all 67 counties. The findings are deeply concerning:
Approximately 45 counties are experiencing teacher shortages, ranked as “severe” or “extremely severe.”
- Erie County needs 350 additional qualified teachers, and its supply of new educators has dropped by nearly 50% over the past decade.
- York County is short 208 teachers, with teacher certifications declining by more than 60% over the past decade.
- Bucks County needs 190 more teachers and faces a major diversity gap: while a third of its students are non-white, just 4% of its public school teachers are people of color.
Philadelphia, Delaware, and Allegheny Counties are also experiencing some of the state’s most critical staffing gaps.
The report calls for commonsense investments—such as student-teacher stipends, apprenticeship programs, and improved data collection on workforce trends—to help rebuild a pipeline of qualified, diverse educators. These are not luxuries. They are necessities if Pennsylvania hopes to avoid deepening this educational crisis.
At NPPC, we see a clear through-line: when public employees are not respected, supported, or provided with the necessary resources, public services suffer. Addressing teacher shortages is about valuing those who dedicate their careers to serving our communities.
A Step Toward Restoring Promised Pensions In New Hampshire
In New Hampshire, public employees may soon see long-promised benefits restored. The state Senate’s budget committee approved a proposal to reinstate pension benefits stripped from 1,550 police, firefighters, and other first responders by a 2011 reform law. Although the vote split both parties and the debate continues, it marks a significant step forward.
The original pension cuts were made under the guise of fiscal responsibility, but once implemented, the reductions accelerated workforce shortages and recruitment problems now plaguing the state. As corrections officer and union leader Seifu Ragassa put it, watered-down proposals that delay full restoration “do nothing to address these realities.”
We agree. When public employees are told to wait, compromise, or settle, the ripple effect is felt across our communities. Pension security is not a bonus—it’s a promise. And breaking that promise makes it harder to recruit and retain the essential workers who keep us safe every day.
What We’re Watching
These stories are not isolated—they reflect a troubling national trend: states underinvesting in public services while demanding more from the workers who keep our communities running. With ongoing budget cuts and shrinking resources, especially under the current administration, we anticipate even more of this in the year ahead. From the mass layoffs in California, teacher shortages in Pennsylvania, or long-overdue pension fixes in New Hampshire, the message is clear: our public systems are stretched thin, and public employees are bearing the cost.
NPPC will continue to advocate for defined benefit pensions, sustainable public funding, and policy solutions that respect and retain public workers. Because when we invest in those who serve, everyone benefits.
Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.