The 401(k)-style investment accounts that more than 19,000 educators will rely on for their retirement continue to lag behind the benefits promised by the state's older, traditional pension fund, The Associated Press reports.
Consolidated Public Retirement Board officials offered lawmakers an update this weekend as they appeal a successful challenge of the state's plan to merge its teacher pension offerings.
Just over 1,100 educators with the individual investment accounts are ready to retire, age 60 or older, but only 23 have more than $100,000 saved. The largest of those accounts is only $157,000, compared to the $200,000 to $400,000 in benefits guaranteed by the older plan.
30 July 2007
Teacher Pensions
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The 1100 ready to retire have only been paying into their accounts since its inception in 1990.
A bad move on their parts to buy into it in the first place. And then compounded by less than aggressive investment choices.
The retirement board's position seems to be that since those people aren't making money, it's OK for the state to steal the money in their accounts.
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