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High Expectations

When Teachers Choose Pension Plans: The Florida Story

Matthew M. ChingosMartin R. West
2.14.2013
2.14.2013

In an era of budgetary belt tightening, state and local policy makers are finally awakening to the impact of teacher pension costs on their bottom lines. Recent reports demonstrate that such pension programs across the United States are burdened by almost $390 billion in unfunded liabilities. Yet, most states and municipalities have been taking the road of least resistance, tinkering around the edges rather than tackling systemic (but painful) pension reform.

Is the solution to the pension crisis to offer teachers the option of a 401(k)-style plan (also known as a "defined contribution" or DC plan) instead of a traditional pension plan? Would this alternative appeal to teachers?

When Teachers Choose Pension Plans: The Florida Story sets out to answer these questions.


Policy Priority:
High Expectations
Topics:
School Finance
Governance
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Matthew M. Chingos
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Martin R. West

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