Blog: State Pension Plans

While the recent recession took a large toll on plans, however, other factors like inadequate contributions are also to blame.
Through their unions, teachers bargain with school districts over almost every aspect of schooling. Everything, that is, except pensions.
In Michigan, school funding has increased but schools aren’t seeing much of the money.
Many of Colorado’s teachers aren’t getting their money’s worth on retirement savings.
New Jersey needs to rethink the overall design of its retirement system to make it better for all workers.
Guest blogger Chris Lozier proposes another way to put unfunded pension liabilities in perspective.
North Carolina recently passed legislation that will make it easier for teachers to receive retirement benefits.
Tennessee recently released a report that examines teacher retention in relation to effectiveness. Policymakers can use this data to rethink the state’s pension system.
A hundred years ago, Illinois teachers received a fixed, annual benefit that was determined independent of salary: a “flat pension.” However, there were severe issues with the original pension system.
Illinois experienced increased teacher retention over the past decade. Rising retention rates however translated to increasing costs, and in 2011, Illinois responded by making it more difficult for a teacher to receive a pension.