Not all teachers can receive a full refund plus interest on their contribution. And for many, participating in the state system comes with other trade-offs.
A pension law that would have reduced benefits for city workers was ruled unconstitutional. The ruling is a tough blow for the city’s finances and could worsen the situation for new and future workers.
In terms of retirement benefits, now is the worst time in at least three decades to become a teacher. After years of expansion, a number of states enacted legislation cutting benefits for workers in response to financial pressures. The cuts fall hardest on new and future teachers, particularly for teachers hired after the recession who do not plan to teach in the same state for 30 or more years.
For all the media attention over the pension cash crunch in Chicago, there been no mention about the benefits themselves, despite their severe inadequacy.
