Teacher Pensions

An estimated 19,602 West Virginia teachers and Department of Education employees are in a real bind.

About 1,000 of them successfully sued to block the merger of their 401(k)-style individual investment accounts into the traditional-style Teachers Retirement System fund.

But several thousand more favored the merger. Most likely are worried that their individual accounts aren't earning enough for their future retirement benefits.

As I point out in The Associated Press' update on this issue, state officials say none of the individual accounts has more than $200,000, and only 72 have more than $100,000. To match the benefits offered by TRS, an account would need at least $500,000.

The Legislature appears unlikely to act this session. The agency that oversees state pensions, the Consolidated Public Retirement Board, met Wednesday to discuss its options.

The board decided to wait until its April 11 meeting to vote on whether to appeal the court ruling. The appeal deadline is May 25.

Besides weighing the merits of a legal challenge, the board in the meantime will be studying the financial impact of the current situation on both its system and the 401(k)-style enrollees. The board will also aid a similar study by lawmakers, which will yield a report in July.

The Charleston Gazette also has the story, and also examines some of the costs involved.