Research Report How Will Rhode Island's New Hybrid Pension Plan Affect Teachers?
Richard W. Johnson, Barbara Butrica, Owen Haaga, Benjamin G. Southgate
Display Date
Download Report
(356.18 KB)

In 2011 Rhode Island replaced the stand-alone defined benefit pension plan it provided to state employees with a hybrid plan that reduced the defined benefit component and added a 401(k)-type, defined contribution component. Although controversial, the new hybrid plan will boost retirement incomes for most of the states public school teachers. Our simulations show that two-thirds of newly hired teachers will earn more retirement benefits under the hybrid plan they would have earned under the old plan. Defined contribution plansthe dominant employer-sponsored retirement plan in the private sectorcan play an important role in the reform of public-sector pensions.
Research Areas Education Wealth and financial well-being Aging and retirement Taxes and budgets
Tags Economic well-being Pensions School funding Wages and nonwage compensation State and local tax issues Retirement policy
Policy Centers Income and Benefits Policy Center