A school choice advocate says the Internal Revenue Service's proposed changes to the definition of "governmental plans" could make school teachers ineligible for participation in state pension systems.
The IRS' "Determination of Government Plan Status" would force states to prohibit public charter school teachers from participating in state retirement plans. Todd Ziebarth, vice president for state advocacy and support for the National Alliance for Public Charter Schools, says the IRS claims it did not intend to take aim at charter schools when these changes were proposed. But his group warns that it will negatively affect more than 90 percent of the charter school workforce -- all of whom will either be forced to leave their schools or lose their accrued pension wealth.
So members of Congress are urging IRS officials to clarify the plan.
