The last-minute pension proposal introduced as part of the budget package has several components, the most concerning of which is a decrease to 3 percent from the current 6 percent that employers can offer educators in both the Teachers’ Retirement System and State Universities Retirement System for pay increases in the four years used to calculate their retirement without incurring any additional costs.
Here is an FAQ that’s been developed on the topic. It’s posted on the Members Only section of the IEA website.
IEA Members can download the 3% Law Q&A sheet
Because educators can qualify for the pension program after five years, the concern is that employers may want to limit any salary increases to 3 percent, which would deter people from furthering their education, and dissuade people from entering the profession, ultimately lowering the quality of education students receive.
