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ERIC Number: ED343200
Record Type: Non-Journal
Publication Date: 1990
Pages: 22
Abstractor: N/A
Reference Count: N/A
Pension Portability in the Northeastern States. A Policy Brief Prepared for the Steering Committee of the Northeast Common Market Project.
Title, David
To facilitate teacher mobility in the Northeast, barriers to interstate movement must be lessened. Presently, teachers are restricted from transferring pension assets across state lines; they can lose up to 40 percent of their retirement benefits, can usually transfer only part of their years of service, and may be financially unable to "buy in" years of service even when allowed. This policy brief recommends that the seven Northeastern states consider passing legislation (similar to Rhode Island's) allowing full and equitable pension portability. This system would simplify buy-in regulations, end transferring teachers' financial losses, increase teacher mobility and school districts' hiring choices, and complement the Northeast Regional Credential. The program would involve no administrative cost and would minimally affect state retirement systems' financial assets. Teachers from New York, Connecticut, and Maine could easily attain their full number of years when transferring within the region. Teachers from Massachusetts and Rhode Island would still face a reduction in years of service upon transferring to half the states in the region, and teachers from Vermont and New Hampshire would face a similar reduction upon transferring to nearly all the states. However, teachers in all states would maintain their full pension assets when crossing state lines. An appendix indicates how estimated salaries, contribution rates, and accrued pension assets were derived. (MLH)
Regional Laboratory for Educational Improvement of the Northeast and Islands, 300 Brickstone Square, Suite 900, Andover, MA 01810 (Order No. 9075-09; $4.80 plus $2.50 postage and handling).
Publication Type: Reports - Evaluative; Guides - Non-Classroom
Education Level: N/A
Audience: N/A
Language: English
Sponsor: Office of Educational Research and Improvement (ED), Washington, DC.
Authoring Institution: Regional Laboratory for Educational Improvement of the Northeast & Islands, Andover, MA.