Source: Education Dive
New research from the University of California, Berkeley Center for Labor Research and Education and the National Institute on Retirement Security, comparing teacher pension plans and 401K-style accounts in six states, concludes that pensions generally provide greater value to teachers and play a critical role in retaining educators. However, since the market crash in 2008, 48 states have made changes to their pension plans as have many companies across the nation. Many states are now facing unfunded liabilities that range from mildly concerning to nearly catastrophic. These unfunded liabilities are threatening the security of some pension plans and causing states to divert money from other services, including education, to keep pace with funding the plans.