More than 78 percent of Teachers' Defined Contribution plan members have elected to move to the Teachers' Retirement System and its traditional pension benefit.
The Associated Press has details.
With 14,871 TDC enrollees approved for the exodus, the rate more than exceeds the 65 percent threshold set by lawmakers. It also triggers the state subsidy provision, as it cleared 75 percent of eligible members.
Lawmakers had previously proposed providing $24.5 million to ensure the transfers can receive full benefits under the other plan. They had otherwise faced paying sizable actuarial estimates, as they've been paying less from their wages than their soon-to-be TRS brethren have been toward their retirement.
03 June 2008
Teacher Pension Transfer Approved
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2 comments:
I still don't understand why my tax dollars are being used to reward people for making poor choices with their 401k accounts. It's too bad these people didn't pay attention to making good financial decisions with their retirement funds earlier. Now that they're being offered my money, they jump to make the decision.
So a system that is $4 billion in the hole gets another $25 million of taxpayer money.
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