January 2016

District of Columbia

Submitted by admin on Fri, 2016-01-29 16:43
How Do Teacher Pensions Work in Washington, D.C.?

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Virginia

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Virginia’s teacher retirement plan, it earned an overall grade of D. Virginia earned a C for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Kansas

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Kansas’s teacher retirement plan, it earned an overall grade of F. Kansas earned a C for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Oklahoma

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Oklahoma’s teacher retirement plan, it earned an overall grade of F. Oklahoma earned a F for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Arkansas

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Arkansas’s teacher retirement plan, it earned an overall grade of F. Arkansas earned a F for providing adequate retirement benefits for teachers and a D on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Missouri

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Missouri’s teacher retirement plan, it earned an overall grade of F. Missouri earned a F for providing adequate retirement benefits for teachers and a D on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Wisconsin

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Wisconsin’s teacher retirement plan, it earned an overall grade of F. Wisconsin earned a F for providing adequate retirement benefits for teachers and a B on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Minnesota

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Minnesota’s teacher retirement plan, it earned an overall grade of F. Minnesota earned a F for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Illinois

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Illinois’s teacher retirement plan, it earned an overall grade of F. Illinois earned a F for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.

Indiana

Submitted by admin on Fri, 2016-01-29 16:43
Based on our analysis of Indiana’s teacher retirement plan, it earned an overall grade of D. Indiana earned a C for providing adequate retirement benefits for teachers and a F on financial sustainability.

Glossary of Financial Terms

Vesting period: The number of years a teacher must teach before becoming eligible to receive a pension. Although the length of vesting periods vary by state, 5 years is typical. In every state, a teacher who leaves prior to vesting is eligible to withdraw his or her own contributions, sometimes with interest, but few states allow those employees to collect any portion of the employer contributions made on their behalf.

Employee contribution: The percent of a teacher’s salary that he or she pays annually to the pension fund.

Employer contribution: The percent of a teacher’s salary that the state, school district, or a combination of the two pays annually to the pension fund.

Normal cost: The annual cost of retirement benefits as a percentage of teacher salary. This excludes any debt cost.

Amortization cost: The annual cost of a pension fund’s contribution toward any unfunded liabilities. This can also be thought of as the debt cost of the pension fund.