According to an article in this morning's Courier Times, "The increases needed to make up for the poor performing teacher retirement fund will cost districts and their taxpayers millions of dollars." Just what you needed to read when you're already panicked about the economy, right?
There is a solution which would ease the burden on taxpayers while maintaining the teachers' retirement benefit, and it's relatively simple to implement - allow each teacher to manage their own pension fund investments just as they do with their 403(b). This would allow teachers to manage investments based on their personal situation which would likely yield them a more favorable return (especially younger investors). Taxpayers would no longer be responsible for the ups and downs of the stock market, and the state would probably save some money from not having to pay people to come up with investment strategies.
Sounds good, right? So why have they ignored this idea in Harrisburg? Could it be because our elected officials enjoy the same pension program as the teachers?
Maybe you should email your State Rep, Frank Farry, and your State Senator, Tommy Tomlinson, and demand they introduce legislation to restructure the State's pension plan. I'm sure they'd love to hear from you!