On top of the endless changes to our profession, how would you like to see your retirement benefits reduced? That is a strong possibility if State Treasurer Ken Miller has his way. Treasurer Miller believes the State of Oklahoma should begin moving away from a pension system with defined benefits and towards a 401k savings account with defined contributions.
Here’s a comparison of current and proposed systems:
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TRS is a defined benefit. Upon retirement you will receive a guaranteed monthly retirement check for life. |
The Proposed Plan is a 401k like plan which is a defined contribution. Upon retirement you will receive a monthly check until the money runs out. |
All teachers are currently in TRS. Treasurer Miller would mandate that all future teachers be placed in a 401k like plan. Under the guise of “choice” and “flexibility,” new teachers would be responsible to manage their accounts wisely and hope that market conditions and fees paid to brokers won’t decimate their savings.
Treasurer Miller says current teachers are not to worry because you will stay in TRS and the proposed changes won’t have any impact on you.
WHAT THE AFT BELIEVES:
Our current retirement system is in jeopardy if new teachers are not allowed to participate in TRS. Actuaries project billions of dollars of additional cost if no new employees go into the current pension pool. With less teachers in TRS, and as the years go by, who in their right mind believes TRS will be something to count on?
As for future teachers their retirement rests squarely on their back. They will need to judiciously manage their retirement savings, adroitly adjust to market conditions and feel confident their investments will give them retirement security for twenty-five years or so.
The AFT believes legislative changes to TRS several years ago are working. Experts say that TRS will be sufficiently funded in about twenty years, which is a safe period in terms of pension systems. Learn more about protecting TRS at keepokpromises.org.