The states just got a report card on their teacher pension systems, and many states have work to do. The National Council on Teacher Quality (NCTQ) in “Doing the Math on Teacher Pensions” reports that collectively in 2014, state teacher pension systems had unfunded liabilities amounting to $500 billion and that the states contribute an average of 70 cents for every dollar contributed to those systems toward that debt.
The NCTQ considers the teacher pension systems of eight states — Delaware, Idaho, North Carolina, Oregon, South Dakota, Tennessee, Washington and Wisconsin, as well as the District of Columbia — to be well-funded.
Highlights of the findings include:
The report says that all but three states — Arizona, Minnesota and South Dakota — require teachers to wait more than three years before they are vested. Fifteen states have vesting periods of 10 years or more, a 66% increase in just five years.
The NCTQ considers the teacher pension systems of eight states — Delaware, Idaho, North Carolina, Oregon, South Dakota, Tennessee, Washington and Wisconsin, as well as the District of Columbia — to be well-funded.
Highlights of the findings include:
- Seven states — Alaska, Florida, Michigan, Ohio, South Carolina, South Dakota and Utah — offer a fully or nearly fully portable primary pension plan for teachers.
- 43 states have decreased their pension funding ratios since 2008.
- 43 states require excessive contributions of teachers, employers or both.
- 29 states have increased teacher contribution rates since 2008.
- 14 states base retirement eligibility on age only.
The report says that all but three states — Arizona, Minnesota and South Dakota — require teachers to wait more than three years before they are vested. Fifteen states have vesting periods of 10 years or more, a 66% increase in just five years.
- Log in to post comments