Wednesday, May 21, 2008

WV educators going back to defined benefits?

From John Curry, May 21, 2008
Subject: WV educators kicking defined contributions out!?
Shawn Falkenstein, 05/21/2008
Morgantown, W.Va.
It appears teachers in West Virginia are in favor of returning to the old defined-benefits retirement system. WAJR-AM has obtained vote totals for 16 counties. 14 of them reached the necessary 65 percent to move back to the old system....only those in Brooke (63%) and Berkeley (52%) failed to reach the 65 percent threshold.
The vote tallies for other counties: Monongalia County (73%) voted to return to the old system, Taylor (75%) Upsher (82%), Wyoming (95%), Hancock (67%), Mercer (84%), Cabell (78%), Mineral (72%), Lincoln (75%), Morgan (75%), Wayne (90%), Wirt (80%), Summers (89%), and Nicholas (83%).
Teachers and service personnel had several weeks to submit their votes on whether or not they wanted to go back to the old system.
The new state law says 65 percent of the nearly 20-thousand teachers and service personnel much agree to the switch for it to happen.
If between 65% and 75% of the teachers eligible approve the change, they'll return to the defined benefit plan at the 75% level with the option of purchasing the remaining 25%.
If more than 75% of the teachers eligible approve the change, the remaining 25% could be purchased at a lower cost of what it would be if between 65% and 75% of the eligible teachers approve the switch.
The final tally will be announced in June.
Larry KehresMount Union Collge
Division III
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