ERIC Number: ED559330
Record Type: Non-Journal
Publication Date: 2014-May
Abstractor: As Provided
Reference Count: 15
How Will Rhode Island's New Hybrid Pension Plan Affect Teachers? A Report of the Public Pension Project
Johnson, Richard W.; Butrica, Barbara A.; Haaga, Owen; Southgate, Benjamin G.
In 2011 Rhode Island replaced the stand-alone defined benefit pension plan it provided to state employees with a hybrid plan that reduced the defined benefit component and added a 401(k)-type, defined contribution component. Although controversial, the new hybrid plan will boost retirement incomes for most of the states public school teachers. Our simulations show that two-thirds of newly hired teachers will earn more retirement benefits under the hybrid plan they would have earned under the old plan. Defined contribution plans the dominant employer-sponsored retirement plan in the private sector can play an important role in the reform of public-sector pensions.
Descriptors: Retirement Benefits, Teacher Retirement, Role, Employees, Income, Public School Teachers, Change, Teacher Salaries, Public Policy
Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org
Publication Type: Reports - Descriptive
Education Level: N/A
Sponsor: Laura and John Arnold Foundation
Authoring Institution: Urban Institute
Identifiers - Location: Rhode Island