Pension Benefits Better Than 401k For Teachers
The California State Teachers’ Retirement System offers a better plan than a 401(k), according to a new report from University of California, Berkeley.
The study shows that teachers would have their retirement income security reduced by switching to an account-based retirement system.
Some of the other highlights of the study show that teachers can retire at 61, and nearly half will have served for at least 30 years.
“This study rebuts the myth put forward in several studies that seek to show that teachers will not benefit, or even vest, in a defined benefit retirement plan,” said CalSTRS chief executive officer Jack Ehnes.
CalSTRS is the world’s largest educator-only pension fund, serving 429,000 active public school educators, from across 1,700 school districts, county offices of education and community college districts.
Read more at Berkeley News
View the report Are California Teachers Better off with a Pension or a 401(k)?