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Wednesday, November 24, 2010

Teacher's Pensions in California

 Teachers are required to pay into their retirement accounts. Most pay 8%, which is higher than the rate private workers pay into Social Security. In general teachers are not eligible for SS. Even if they have paid into SS for 40 years, as I have, they are penalized via Government Pension Offset and Windfall Elimination Provision. Private industry workers who receive a pension and/or have a separate retirement account, are not penalized by the WEP/GPO so their potential retirement income is much more than a teacher's. 
School districts are required to contribute to the specified teachers' retirement service, CalSTRS, on behalf of their employees just as a private company is required to pay into SS.
Doesn't seem fair or usefully motivating to teachers. 

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