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41 States Have Underfunded Pension Systems

By Ron Skinner posted 12-13-2012 11:35

  
According to a report released today by the National Council on Teacher Quality, 41 states have state educator pension systems that are underfunded to the tune of about $390 billion.

Check out the report
to see what they have to say about your state.

Among the key findings:
  • Pension system underfunding is worse than meets the eye because of unrealistic assumptions about returns on investment
  • It takes too long for teachers to get vested in most systems and most of the defined benefit plans are inflexible and unfair to teachers--not in sync with the needs of a modern workforce.
  • Teachers and school districts are being squeezed to make up for poorly funded state systems.

They also make a few recommendations.  It's a long report at 72 pages, but the 4-page executive summary is a quick and informative read.

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