Why West Virginia Retired the 401(k)

Long, Cindy
March 2012
NEA Today;Spring2012, Vol. 30 Issue 4, p38
The article discusses two teacher retirement plans, the defined benefit (DB) pension and the defined contribution (DC) plan, which is like a 401(K). The article discusses West Virginia, where Governor Gaston Caperton switched newly hired teachers from DB to DC in 1990. The article says the DC plans lost most of their savings in the stock market crash of 2008 and teachers who had switched were unable to retire. The article says 401(K) plans were meant to provide tax breaks for executive officers.


Related Articles

  • Responsible retirement solutions: Moving from a Defined Benefit to a Defined Contribution world. Clark, Al // Asia Insurance Review;Oct2009, p98 

    The article presents the analysis of Defined Benefit and Defined Contribution in relation to retirement fund plans. It notes that companies are expected to make sensible assessments of the pension liabilities. In addition, there was once a period of high volatility in equity markets in 1960's...

  • Pensions and retirement.  // Monthly Labor Review;Jan2004, Vol. 127 Issue 1, p53 

    The evolution of pension plans in the U.S., from traditional defined benefit plans toward defined contribution plans, has increased the age at which workers retire, as of January 1, 2004. In the early post-World War II period, most pensions were defined benefit plans, which led to sharp declines...

  • Retirement and the Evolution of Pension Structure. Friedberg, Leora; Webb, Anthony // Journal of Human Resources;Spring2005, Vol. 40 Issue 2, p281 

    Defined benefit pension plans have become considerably less common since the early 1980s, while defined contribution plans have spread. Previous research showed that defined benefit plans, with sharp incentives encouraging retirement after a certain point, contributed to the striking decline in...

  • Personal longevity risk: Defined contribution pensions and the introduction of an 'equilibrium retirement age'. Madsen, Chris; Tans, Martijn // Pensions: An International Journal;Aug2012, Vol. 17 Issue 3, p169 

    Madsen and Tans address longevity protection for people with Defined Contribution (DC) plans, focusing on variable retirement. The authors introduce the concept of an 'Equilibrium Retirement Age' and show how this increases as life expectancy rises. The authors demonstrate how an individual can...

  • Your Retirement System--Planning For The Future. Dillon, Dana // CSLA Journal;Fall2011, p18 

    The article offers a look at the state of the retirement system in California as of September 2011. According to the California State Teachers' Retirement System (CalSTRS), the largest teachers' retirement fund across the U.S., there is a total of 56 billion U.S. dollars unfunded liability that...

  • PLAN NOW TO PREPARE FOR YOUR RETIREMENT. Kersten, Thomas A. // Kappa Delta Pi Record;Winter2011, Vol. 47 Issue 2, p85 

    The article focuses on the need for teachers to plan early for their retirement in the U.S. It mentions that delaying personal retirement investing due to either a lack of investment knowledge or simple inertia may result to a disadvantage that impacts retirement lifestyle. It discusses the...

  • Pension Perils. Winans, Dave // NEA Today;Feb2006, Vol. 24 Issue 5, p19 

    This article examines on contrasting approaches used by West Virginia and Alaska toward retirement security, as of February 2006. new West Virginia educators hired as of July 1 last year were channeled into a defined-benefit retirement plan, yet on July 1, 2006, Alaska newbies are to be pushed...

  • The Two Sides of Pension Plans. Flannery, Mary Ellen // NEA Today;Mar2007, Vol. 25 Issue 6, p29 

    The article focuses on defined contribution plan and defined benefit plan for teachers in the U.S. The author considers the case of Sandy Gay, a teacher who switched from the traditional pension plan to the defined-contribution plan. Defined contribution plan is an individual, tax-deferred...

  • West Virginia Teachers' Pension Plan Revised--Yet Again. Samuels, Christina A. // Education Week;3/26/2008, Vol. 27 Issue 29, p16 

    The article presents information on a pension proposal for teachers, which has been approved in West Virginia's legislature. The proposal offers teachers a chance to move from a 401(k)-style defined-contribution retirement system to a defined-benefit program that would give them a guaranteed...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics