Welfare, Medicaid and Social Services

Re: 2009 House Bill 4527 (401k type pension for new school employees )

gypsy — Fri, 03 Apr 2009 22:13:44 GMT

A defined benefit plan is much better than a defined contribution plan. How many people with 401k's and 403b's who were ready to retire in 2008 have had to postpone their retirements because of the stock market crash? A defined benefit plan may be harder on accountants, but it's much more reliable for the pensioner. I oppose this bill.

Re: 2009 House Bill 4527 (401k type pension for new school employees )

Mike Hignite — Fri, 03 Apr 2009 22:04:09 GMT

This really isn't so much about pensions retaining good teachers. You could have a defined contribution plan be more attractive than a defined benefit plan.

The main reason that the wise Mr. Rogers is proposing this is that it simplifies accounting, grants control of the retirement plan to teachers, rather than relying on the abilities of the state. The work that must be done to calculated a defined benefit plan is insanely complex, and expensive, and when you are all said and done, may not be much better.

I like the 403(b) style plans because I have more control over them. Also, they are very simple to account for, and budget for. Much of the financial problems that non-profits like schools & governments had stem from defined benefit plans that go wacky in times like this.

Good work, Bill Rogers.

Re: 2009 House Bill 4527 (401k type pension for new school employees )

silence dogood — Thu, 12 Mar 2009 14:02:06 GMT

dear gh.

i do not see the attraction and retention of the best and brightest teachers as our state's highest priority. which is much the pity.

Re: 2009 House Bill 4527 (401k type pension for new school employees )

GH-UpNorth — Thu, 12 Mar 2009 02:49:21 GMT

Yes, this would seem to save the state a pile of money, but will likely make it difficult to recruit and retain high quality teachers. Retirement security is a crucial component of any employment package, and recent experiences with 401ks will make that option much less attractive. I don't think we want our best new teachers or teaching candidates leaving the state.

2009 House Bill 4527 (401k type pension for new school employees )

admin — Mon, 01 Jan 2001 05:00:00 GMT

Introduced in the House on March 10, 2009

Click here to view bill details.