Area 4: Retaining Effective Teachers Goal h
Figure 106
Examples of Best Practice
What type of pension systems do states offer teachers?
30
13 4 Defined Defined Hybrid benefit benefit plan plan1 plan only with defined contribution supplemental plan
3
1
Alaska provides a fair and flexible defined contribution pension plan for all teachers. This plan is also highly portable, as teachers are entitled to 100 percent of employer contributions after five years of service. South Dakota’s defined benefit plan has some creative provisions, which makes it more like a defined contribution plan. Most notably, teachers are able to withdraw 100 percent of their employer contributions after three years of service. In addition, Florida, Ohio and South Carolina are noteworthy for offering teachers a choice between a defined benefit plan and a defined contribution plan.
Choice of Defined defined contribution benefit or plan only defined contribution plan
1 A hybrid plan has components of both a defined benefit plan and a defined contribution plan
nctq State teacher Policy Yearbook 2009 : 203 national summary