January 2016

Arizona

Submitted by admin on Fri, 2016-01-29 16:42
How Do Teacher Pensions Work in Arizona?

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.

California

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of California’s teacher retirement plan, it earned an overall grade of F. California 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.

Texas

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Texas’s teacher retirement plan, it earned an overall grade of F. Texas 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.

Washington

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Washington’s teacher retirement plan, it earned an overall grade of D. Washington earned a C 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.

Idaho

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Idaho’s teacher retirement plan, it earned an overall grade of D. Idaho 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.

Montana

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Montana’s teacher retirement plan, it earned an overall grade of F. Montana 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.

Wyoming

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Wyoming’s teacher retirement plan, it earned an overall grade of F. Wyoming 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.

Michigan

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Michigan’s teacher retirement plan, it earned an overall grade of F. Michigan earned a D 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.

Ohio

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Ohio’s teacher retirement plan, it earned an overall grade of F. Ohio 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.

Kentucky

Submitted by admin on Fri, 2016-01-29 16:42
Based on our analysis of Kentucky’s teacher retirement plan, it earned an overall grade of F. Kentucky 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.