Fact Sheet Policy Brief: How Will Teachers Fare in Rhode Island's New Hybrid Pension Plan?
Richard W. Johnson, Barbara Butrica, Owen Haaga, Benjamin G. Southgate
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Hybrid retirement plans that combine defined benefit pensions with 401(k) type, defined contribution accounts can play important roles in the reform of public-sector pensions. Summarizing results from our longer report, this brief shows that most public school teachers in Rhode Island will earn more retirement income from the states new hybrid plan than they would have earned in the former stand-alone defined benefit plan. However, teachers with at least 25 years of completed service, who account for only one-quarter of the total employed by the state, will fare worse in the hybrid plan.
Research and Evidence Work, Education, and Labor Tax and Income Supports
Expertise Taxes and the Economy Wealth and Financial Well-Being K-12 Education Aging and Retirement
Tags Economic well-being Pensions School funding Wages and nonwage compensation State and local tax issues Retirement policy