Source: Education Next
To explore this possibility, we studied retirement plans and surveyed charter schools in five states with such flexibility: Arizona, California, Florida, Louisiana, and Michigan. We find a growing number of schools, especially those run by management organizations, are choosing to opt out of state pension plans. In lieu of standard plans, charters are providing various, more portable defined-contribution options and incentives such as 401(k) and 403(b) plans, potentially providing a new way to ensure that teachers’ retirements are secure. In interviews, charter operators detail their reasons for these choices, providing important context to a retirement challenge that is unlikely to be resolved without significant action.