Charting a New Course to Retirement: How Charter Schools Handle Teacher Pensions

In this "Ed Short" from the Thomas B. Fordham Institute, Amanda Olberg and Michael Podgursky examine how public charter schools handle pensions for their teachers. Some states give these schools the freedom to opt out of the traditional teacher-pension system; when given that option, how many charter schools take it? Olberg and Podgursky examine data from six charter-heavy states and find that charter participation rates in traditional pension systems vary greatly from state to state. When charter schools do not participate in state systems, they most often provide their teachers with defined-contribution plans (401(k) or 403(b)). But some opt-out charters offer no alternative retirement plans at all for their teachers. Read on to learn more.