Report: ConvertingTexas teacher pensions to 401(k) would be costly

[TexasTowelie]

Dropping the guaranteed pension benefit for Texas' future school employees would be costly, complicated and reduce benefits for retirees, according to a new study by the Teacher Retirement System of Texas.

The study, mandated by lawmakers last year, states that the $110 billion teacher fund can pay the benefits it owes through 2075 but will need additional contributions from the state or members to erase a $24 billion long-term funding liability.

That liability, however, would increase to $36 billion if new employees were closed out of the pension and instead received a retirement benefit akin to a 401(k), as critics of public pensions recommend.

The state would then need to find some way other than member contributions to pay off that liability, said Brian Guthrie, executive director of the Teacher Retirement System.

More at http://www.statesman.com/news/texas-politics/report-convertingtexas-teacher-pensions-to-401-k-would-2447023.html

[font color=green]Because we don't treat teachers like crap while they are working, now we have to screw them in retirement also?

This Randian philosophy is another attack on the middle class. If you eliminate defined-benefit plans for teachers and other public sector employees, then it provides justification for private sector employers to drop defined-benefit plans also (not that many still have them).

Think what lesson these teachers might teach to the next generation based upon their own experience of how we have treated them?[/font]

[yourout]

1. and stupid.

[chervilant]

2. A wee bit optimistic,

perhaps, thinking we'll have 'another generation' given the rapidity with which global climate change is rendering our ecosystem uninhabitable?

[DhhD]

3. Remember that when the 401k is dissolved at retirement, half the money goes to Wall Street

as a fee; something that many people learned in the 2008 collapse of the economy.

[TexasBushwhacker]

4. I can't imagine teachers would go for a 401k type plan

The fact that Texas has a pretty good teacher retirement program is one of the things that still makes teaching attractive. I could see them adjust the retirement age up a couple of years, kind of like how they're moving the age for full Social Security benefits to 67. They could also give COLAs less frequently. The fact that it's solvent to 2075 shows that it's in VERY good shape. If it ain't broke, don't fix it.

[bootat9]

6. colas

colas do not exist with TRS. the last cola for retirees was in 2001. in 2005 the Rs gave a retirement increase to legislators but not teachers. this is another example of the Rs increasing attacks on public school education. next is the big push for vouchers. but when asked about education they will say education is there number one priority...and then turn around and vote against public school education. go figure.

[mbperrin]

5. Solvent until 2075.

That means people BORN this year can become teachers in 2034, work 40 years and retire with full benefit.

Problem? None.

As usual, the goddam Leechislature has their heads up their asses. I teach government in high school, and these sorts of greedy moves are part of a unit we cover on "Why you SHOULD care who's in Austin."