If COVID-19 causes an economic downturn anything like the last one, that means bad news for Nebraska’s teacher pension plan. In a new piece for The Omaha World-Herald, I argue that Nebraska leaders will face a tough choice. They can raise contribution rates and cut teacher benefits, like they did after the last recession, or they could extend a retirement plan the state already has in place for state employees to also cover its teachers. I suggest the latter:
In short, Nebraska is offering its state employees a better deal than it offers its public school teachers. Compared to teachers, state employees qualify for retirement benefits sooner, receive a higher employer contribution toward those benefits, and are better shielded from market downturns.
Rather than continuing to cut teacher benefits, Nebraska legislators should take this opportunity to extend its existing cash balance plan to teachers, and teachers should take this opportunity to demand better for themselves.