10 June 2008

Teacher Pension Update

Lawmakers expect to apply final tweaks to the recently approved transfer of more than 14,700 members of the state's 401(k)-style retirement plan for educators, The Associated Press reports.

Legislators say Gov. Joe Manchin is inclined to propose a measure that would add to this exodus a relative handful of Teachers' Defined Contribution plan members who missed last month's deadline "through no fault of their own," AP reports.

"Those members include Marion County educators whose as-yet-unidentified principal failed to submit them on time as required, said Executive Director Anne Lambright of the Consolidated Public Retirement Board," the article said.

The session could also include a funding measure meant to subsidize payments required if transfers want full benefits under their new plan. One lawmaker "estimates the needed amount at $11 million, though state officials say they're still calculating the final figure," AP reports. "Earlier estimates had ranged between $18 million and $25 million."

The Charleston Gazette also touches on that needed appropriation, while predicting that the final figure "would not be available in time for a proposed special legislative session later this month."

MetroNews, meanwhile, reports on the potential class-action lawsuit that would pit TDC members against the providers of one of their investment options.

The lawyers who filed the suit believe enrollees "were duped into signing up with life insurance company VALIC," MetroNews reports.

MetroNews also has audio of one of the lawyers, former House of Delegates member Rusty Webb.


clear eyes said...

Please don't take any more of my money to reward people who made bad choices in their 401ks. Thanks.

wvapoker said...

That is easier said than done. The plan, with no leadership from the CRB, offered poor choices and no education to the members. When they got good leadership they suspended him for bringing Great West, which provided great investment choices and education. This cut out the fat cat Charleston broker middle man. Also, Valic hired former school administrators to convince people to join the TDC that was partially designed by John Cook (Valic) when he worked at the WV Dept of Ed.
I chose to stay in the TDC, because I am young and want to take the cash when I leave instead of letting the State of WV manage it. TRS members will never see a cost of living increase, but costs will continue to climb.