Chaz's School Daze: Why Defined Pensions Are Great For Teachers.

Chaz's School Daze: Why Defined Pensions Are Great For Teachers.

Why Defined Pensions Are Great For Teachers.

One of the great benefits in being a teacher in New York State is the defined pension benefit we have.  For the 40% of state teachers that are vested for a pension, the pension benefit averages about $41,703 annually, that is 54% of the teachers final three year salary, not including Social Security and other retirement plans like a 403b program.  In other words, most New York State teachers can expect to enjoy a well funded retirement.

The defined benefit pension plan is mostly funded by the State's School Districts.  For most Tier IV employees, the vast majority of recent retirees, the employee only pays a 3% contribution for the first ten years and nothing thereafter.  That means the School Districts pay the lion's share to fund the pension.

The table below shows how much the School Districts pay to adequately fund the teacher pension system.

Year.........School District Contribution

2010-11.............8.62%
2011-12............11.11%
2012-13............11.84%
2013-14............16.25%
2014-15............17.53%
2015-16............13.26%
2016-17............11.27%
2017-18.............9.80%
2018-19............10.62%


The estimated School District contribution is CONTINUE READING: Chaz's School Daze: Why Defined Pensions Are Great For Teachers.